ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -subsidy, a direct or indirect payment, economic concession, or privilege granted by a government to private firms, households, or other governmental units in order to promote a public objective.

Detailed explanation-2: -Definition: Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of the subsidised product. Description: The objective of subsidy is to bolster the welfare of the society.

Detailed explanation-3: -An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Detailed explanation-4: -Government grants are sometimes called by other names such as subsidies, cash incentives, duty drawbacks, etc.

Detailed explanation-5: -Subsidies are a type of benefit that is offered by the government to the people, it results in reduction in the value of the subsidised product. It can be offered to individuals or public and private institutions.