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From course:

Economics A Level

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Question:

What is the Main Purpose of Subsides?

Author: go kys



Answer:

-Encourages the Production, and Consumption of Goods that has Positive Externalities - Merit Goods. Subsidies leads to the Supply shifting to the Right -Encourages the Purchase and Usage of Goods that can Reduce Negative Externalities -Allows some Firms to become Internationally Competitive


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go kys
go kys