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What is a subsidy?
Subsidy is a government share for purchasing agricultural inputs like purchase fertilisers,Seeds,Festicides,Tracture etc.Subsidy will helpmarmers to purchase a new technology in Agriculture field examine whether the technology is beneficial or not.Once the technolgy helps the farmers to get high yeild,they will automatically purchase that technology in the nest year onwards without subsidy Externality means something that we get from out side.Example for posstive externality :When we enjoy a beautyful scenary from a garden near our house.Light we utilise from street light.
