ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -What Is a Subsidy? 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).

Detailed explanation-3: -A subsidy is an incentive given by the government to individuals or businesses in the form of cash, grants, or tax breaks that improve the supply of certain goods and services. With subsidies, consumers are able to access cheaper products and commodities.

Detailed explanation-4: -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.