In economics, a subsidy (also known as a subvention) is a form of financial assistance paid to a business or economic sector. This can be used to support businesses that might otherwise fail or to encourage activities that would otherwise not take place. Subsidies can be a regarded as a form of protectionism or trade barrier by making domestic goods and services artificially competitive against imports. Subsidies often distort markets, and can impose large economic costs. The term subsidy may al… (More on Subsidies)