Understanding The Economics Of Business

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Question description

250 words. 2 APA cited references. NO PLAGERISM!!!

The purpose of government subsidies is to encourage activities that are deemed to have positive spillovers. A professional sports team, for example, is thought to increase tax revenues and increased demand for local businesses.

Choose to discuss another good or service for which government provides a subsidy. Include each of the following in your initial post.

1. Describe the subsidy program and explain what spillovers are generated from the subsidy.

2. Explain how both consumer and producer surplus will be affected by the subsidy. Will they increase or decrease?

3. Who are the winners (i.e. increased surplus) and losers (loss of surplus) that result from the subsidy? Remember that there are always trade-offs, and therefore, someone must be the loser.

Try not to choose an item that a classmate has already discussed. In your responses to classmates, help them identify other possible spillovers.

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Tutor Answer

Doctor_Ralph
School: UCLA

Attached.

Running Head: FARM ENDOWMENT AND SUBSIDY

Farm endowment and subsidy
Name
Institution
Course
Date

1

FARM ENDOWMENT AND SUBSIDY

2

The Spillovers Generated From the Farm Endowment and Subsidy
Farm subsidies are a form of government subsidy extended to the American farmers from
the U.S Federal government. The farm subsidy is extended through soft loans with long
repayment periods and low interests rates, low-priced farm inputs such as fertilizers, subsidy on
farm equipment, and training of farmers and availability of markets for the farm produce. The
spi...

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Anonymous
Good stuff. Would use again.

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