A subsidy is an amount of money provided to firms to help reduce production costs which can then be passed on as lower prices, and which can encourage consumption.
Subsidies can be justified as a solution to the problem of market failures, including subsidising merit goods and public goods.
Does Public Choice Theory Affect Economic Output? Both on paper and in real life, there is a solid relationship between economics, public choice, and politics. The economy is one of the major political arenas after all. ...
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