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Year 12 Recap - Subsidies

Year 12 Recap - Subsidies

This Year 12 Recap video centers around the topic of Producer Subsidies.

Subsidies are one of the central policy tools which can be used by a government to influence the outcome in the market to help nudge the equilibrium closer to the social optimum. The knowledge of this concept is crucial, as when discussing potential remedies for markets that fail to allocate scarce resources effectively, this simple but effective policy tool can be discussed.

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