Economics Mixed Economy Questions
The role of subsidies in a mixed economy is to provide financial assistance or incentives to certain industries, businesses, or individuals. Subsidies are typically given by the government to promote economic growth, support specific sectors, or address market failures. They can be used to encourage the production or consumption of certain goods or services, promote innovation, protect domestic industries, or provide social benefits. Subsidies aim to influence market outcomes and ensure a balance between private enterprise and public welfare in a mixed economy.