Saturday, May 27th 2017

Subsidies


Subsidies Meaning:
Support in the form of financial assistance paid by governments to certain industries. Subsidies are paid to support industries that might otherwise fail, or so that they can produce goods and services that are cheaper to buy, or so that they are able to hire more people. Subsidies are meant to produce an overall benefit for people in countries where they exist, but some argue that by distorting markets they do more harm than good.

Subsidies Example:
Many countries subsidize the price of gasoline so that motorists do not have to pay the full market price to refill their vehicles.
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