Which group directly benefits from subsidies? Producers. A subsidy is an amount of money that the government or someone within the public gives to an industry to help the product or service stay low or competitive. Due to the money helping those who are making and selling the product, the producers directly benefit the most.
The group that directly benefit from subsidy is the importers of a product because government pays directly to them.
Subsidy is best defined as a benefit that consumers of a product enjoy due to the fact that the government has paid part of the cost of the product.
A major area in which we see and feel the impact of subsidy is in oil and gas products.
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