Note: This is post #13 in a weekly video series on basic microeconomics.
What is a subsidy? A subsidy is really just a negative or reverse tax, explains Alex Tabbarok. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video by Marginal Revolution University, Tabbarok looks at the subsidy wedge and who benefits the most from different subsidies.
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Understanding tax revenue and deadweight loss
A Tithe for Uncle