Government subsidies aim to correct market failures by aligning _____ with social costs, thus encouraging the production of goods that have positive externalities.

Government subsidies are financial support from the government to help businesses produce certain goods or services. The goal is to align the private benefits that producers receive with the social costs of their production. This means that when a company produces goods that have positive externalities, like clean energy, the government can provide subsidies to encourage more of that production. For example, if a solar panel company receives a subsidy, it can lower its prices, making solar energy more accessible to people. This helps create a cleaner environment, benefiting society as a whole, not just the company.