Overview
A lump sum subsidy is a financial tool used by governments and organizations to provide one-time assistance to individuals or businesses. This type of subsidy can be particularly effective in stimulating economic activity, especially in times of crisis or when encouraging specific sectors. However, ...
Key Terms
Example: The government offered a subsidy to farmers to encourage crop production.
Example: The grant was provided as a lump sum payment to the startup.
Example: The economic impact of the subsidy was significant, boosting local businesses.
Example: Good policy design ensures that subsidies are targeted to those in need.
Example: The subsidy program focused on targeting low-income families.
Example: Over-reliance on subsidies can create dependency among recipients.