subsidies 1.2.9

Question 1

subsidy

Answer 1

a money grant given by governments toreduce costs of production and ecourage an increased output

Question 2

govt use subsidies to…

solve market failour

Answer 2

to encourage more consumption and por production of goods and services that are beneficial to the whole of society
eg: subsiding vaccination, healthcare and education, public transport

Question 3

govt use subsidies to…

increase affordability

Answer 3

use subsidies to encourage greater affordibility of necciessity goods and services. subsidies reduce the price in the market which can be very helpful for low income households to access the market to be able to afford essensial goods and services