Subsidies

• What is one benefit of decreasing costs of production?

  It reduces overall expenses for businesses
• How does increasing output benefit a company?

  It allows the company to meet higher demand
• What is the impact of increased international competitiveness on a business?

  It enables the business to perform better in global markets
• How do subsidies affect competition with domestic firms?

  They make it harder for domestic firms to compete.
• What is one effect of subsidies on prices?

  Subsidies lower prices.
• What is the financial impact of subsidies on the government?

  It costs the government the amount of the subsidy.
• What is an opportunity cost associated with subsidies?

  Every subsidy provided has an opportunity cost.
• How do consumers benefit from subsidies?

  Consumers benefit from lower prices, allowing their income to go further.
• What effect do subsidies have on domestic firms' competition?

  Subsidies allow domestic firms to compete more equally.