English

Ayu Pardede, M.A

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Meeting 4
Subsidy
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Reading
comprehension
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“
A subsidy is an economic term that
refer to the financial benefit
provided by the government to
certain domestic industries or sectors
in the form of tax reduction or cash
payment.
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“
Subsidies reduce the price of the
commodities of the industry to a
level below their cost of production.
A subsidy therefore reduces the
burden on the industry or sector and
is benefits the public in general.
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“
Subsidies were first introduced in
England by Thomas Wolsey. This
was introduced in 1513 to enable
King VIII to pay for the war with
France alongside maintaining his
opulent lifestyle.
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“
Subsidies are provided
government to enhance production
by

of goods and services in a particular

industry. It is also provided to
promote the widespread use and
consumption of the goods and
services that are considered
meritorious by the government.
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“
Subsidies also help to overcome the
threats of bankruptcy and
unemployment in a declining
industry.
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Vocabulary
Vocabularies (1) 10

“ subsidy
-
- domestic
- term - industry
- refer - sector
- financial - tax
- benefit - reduction
- provide - payment
- certain
Vocabularies (2) 11

“
- reduce - first
- price - introduce
- commodity - enable
- below - pay
- cost - War
- therefore - alongside
- burden - maintain
Vocabularies (3) 12

“ opulent meritorious
- -
- lifestyle - help
- enhance - overcome
- particular - threats
- promote - bankruptcy
- widespread - declining
- use
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“
Exercise
Questions and answers 14

“ Answer the following questions based on the

passage!
1. What is subsidy in an economic term?
2. What is the function of subsidy?
3. Who was the first introduced the
subsidies?
4. Is “subsidy” a noun?
5. Is “Thomas Wolsey” a noun? If so, what
type of noun it is?
Word and definition 15

“
a. thing to be sold or things belonging to a person
b. the financial benefit provided the government to
certain domestic industries or sectors in the form
1.
2.
Subsidy
Industry
of tax reduction or cash payment 3. Domestic
c. particular kind of work in factories, mines, etc. to 4. Commoditie
manufacture, obtain, things contrasted with s
distribution and commerce 5. Goods
d. related to the home, family or one’s own country 6. Production
e. the process of producing or something produced
f. an article of trade
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Thanks!