What does “subsidy” mean?

What does “subsidy” mean?


Part of Speech: noun

Pronunciations: IPA: /ˈsəb.sɪ.di/ Glossary-style: [SUB-sih-dee]

Definition: money given to help or support, especially when paid regularly by the government (Ex: a student subsidy).

Example: In the U.S., many farmers receive subsidies from the government to make it financially possible for them to continue their livelihood.

Practice vocab question!

Which of the following would most likely qualify as a subsidy?

  1. A well-known fast-food restaurant pays its staff more than it is legally required to pay.
  2. Impoverished college students visit a plasma donation center to sell their blood for $25.
  3. Jojo wins the lottery.
  4. An altruistic, philanthropic, and frugal person tithes 10% of her salary.
  5. A local government reduces taxes for Safeway (a US-based supermarket chain) so that it will open a branch in an area with no supermarkets.




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