Explain what your city will have to give up


NASCAR race track

Your local city is trying to attract a new NASCAR race track. As part of the package of incentives for luring the facility's builders, the city is offering an economic subsidy of $500,000 to help build the track. You are writing a letter to the editor of your local paper either supporting or criticizing the proposed $500,000 subsidy. In your letter, address the following questions:

* What is a subsidy?

* Identify the economic winners and losers of the $500,000 subsidy.

* Explain what your city will have to give up because of the subsidy. What will it gain?

* Conclude your letter by expressing your point of view.

 

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Business Economics: Explain what your city will have to give up
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