Which of the following is an example of a positive externality that may result from government subsidies?

A positive externality occurs when a decision or action benefits others who are not directly involved in that decision. One example of a positive externality from government subsidies is in the case of renewable energy projects, like solar panel installations. When the government gives financial support for these projects, it helps reduce pollution and promotes cleaner air, which benefits everyone in the community, not just the people who installed the panels. For instance, if a homeowner receives a subsidy to install solar panels, their reduced electricity bills and lower carbon footprint can improve the overall environment for their neighbors. Thus, government subsidies can lead to broader social benefits beyond the immediate financial help they provide.