ECONOMICS
BUDGET DEFICITS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Public Good
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Private Good
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Special-Interest
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Log-Rolling
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Detailed explanation-1: -There are different types of subsidies offered by the government; some of them are: Food Subsidy. Education Subsidy. Export/Import Subsidy.
Detailed explanation-2: -this seems, for instance, to be the case in the oxford online dictionary2 where a subsidy is defined as: “a sum of money granted from public funds to help an industry or business keep the price of a commodity or service low”. 3 But many would argue that tax concessions are also a form of subsidization.
Detailed explanation-3: -What is Incentives and subsidies? The term “incentive” includes concessions and bounties. ‘Subsidy’ denotes a single lump sum which is given by a government to industry. It is granted to an industry which is considered essential in the national interest.
Detailed explanation-4: -A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (such as cash payments) or indirect (such as tax breaks).