ECONOMICS (CBSE/UGC NET)

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ECONOMICS

MARKET FAILURES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
“Assistance by the government to individuals or groups or individuals, such as firms, consumers, industries or sectors of an economy” Is the definition for
A
Excise Taxes
B
Ad Valorem Taxes
C
Indirect Taxes
D
Subsidies
Explanation: 

Detailed explanation-1: -A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

Detailed explanation-2: -Subsidies are payments, tax breaks, or other forms of economic support given by governments to certain industries or economic sectors. The goal of subsidies is to aid or support what are deemed to be key parts of the economy or national infrastructure.

Detailed explanation-3: -transitive verb. : to furnish with a subsidy: such as. : to purchase the assistance of by payment of a subsidy. : to aid or promote (someone or something, such as a private enterprise) with public money.

Detailed explanation-4: -A seller receives a subsidy to reduce the price for consumers.

Detailed explanation-5: -Wheat. Rice. Sugar. Milk. Cooking oil and more. 08-Mar-2021

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