Subsidies Flashcards
1
Q
Subsidy
A
A subsidy is a grant from the government to a producer to lower the costs of production and encourage them to produce more.
2
Q
Examples of subsidies
A
3
Q
Justifications for subsidies for producers
A
4
Q
Diagram
A
5
Q
Total government spending - diagram
A
6
Q
Effect of subsidies with different price elasticity
A
7
Q
Evaluation points
A
