Government subsidies short answer questions
Revision questions
This page includes a short, relatively straightforward revision exercise that you can distribute to your classes to complete either in class or at home. I generally give this to my classes, have them complete the work in their spare time before giving out the answers to self assess.
The page containing the activities, with student access, for this page available at: Government subsidies short answer questions
Subsidies (P3 style questions)
1.Fill in the missing words
A subsidy is a _____________, usually made by government, designed to __________________prices. A subsidy raises the quantity produced by shifting the ____________curve to the__________________.
Some governments in poorer countries give subsidies to producers of _____________foods such as bread or rice, to enable the ________ to live on very low wages.
2. Draw a fully labelled diagram showing the imposition of a subsidy, on two products - one PED elastic and the other PED inelastic.
3.Calculate the amount the government spends on the subsidy for solar panels:
a. Total paid by the government on solar panels:
bi. How much do consumers have to pay for the bus ride after the subsidy?
ii. How much do consumers have to pay for solar panels after the subsidy?
c. How much does the government pay the bus operator for each journey?
ii. How much does the government pay the supplier of the solar panels?
4. Explain why governments might subsidise production of energy from wind and solar sources.
5. Explain why the UK government subsidies the steel industry.
Short answer questions available as a PDF file at: 
Questions