Subsidy

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/subsidy

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the primary function?Redistribution of government expenditure from taxpayers to individuals, households, or businesses
2. What is the scope of application?Used by national and sub-national entities across all countries
3. Why do governments give subsidies?They want to make important things cheaper, help certain industries grow, or support people who need help.
4. How do subsidies help people or businesses?By giving cash, low‑interest loans, tax breaks, or cheaper goods, subsidies make things more affordable and can create jobs.

Government Expenditure: Spending by the government on goods, services, and transfer payments.
Market Failures: Situations where the free market does not allocate resources efficiently on its own.
Trade Disputes: Disagreements between countries regarding international trade practices, often involving subsidies.