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Cash subsidies simply entail the government giving a sum of cash directly to a business or organization. One example of a common cash subsidy in the U.S. can be found in the renewable energy industry?cash subsidies are given to private businesses in the renewable energy sector to stimulate the growth of that industry.

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.

The most highly subsidized crops?corn, soy, wheat, and rice?are the most abundantly produced and most consumed, often in the form of ultra-processed foods. Sugar is also highly subsidized in the form of indirect price supports that benefit producers and drive-up prices, yet sugar is also widely overconsumed.

: to furnish with a subsidy: such as. a. : to purchase the assistance of by payment of a subsidy. b. : to aid or promote (someone or something, such as a private enterprise) with public money.

How do subsidies work? By providing money or other financial resources to businesses, the government helps them continue to operate and produce low-cost goods and services. Since the products they create have a lower price, consumers in the economy can continue to purchase them.

Subsidize The state subsidizes housing for low-income families. She feels that private businesses should not be subsidized by taxpayers. The company subsidizes health insurance for its employees. subsidized agriculture/housing.

Subsidized price. noun [ C ] ECONOMICS (UK also subsidised price) a price for a product that is reduced because the government has paid part of the cost of producing it: Officials told farmers what to grow, bought their crops, and sold them at subsidized prices.