Define the term ‘subsidies’ .
A subsidy is a government payment designed to increase supply and thus reduce the costs of production of goods and services. They are commonly used to right market failure.
CW
Related Economics A Level answers
All answers ▸Explain the term 'equilibrium' and demonstrate how a new equilibrium position is established when there is a decrease in demand for a good or service.
What are the trade-offs with other macroeconomic policy objectives of a fall in the unemployment rate?
What is meant by a monopoly?
Discuss the effects of an introduction of a minimum wage on the labour market.