True or False: Subsidies for individuals to consume goods that generate positive externalities, like planting trees, always result in a net increase in overall social welfare without any unintended consequences.

The statement is false because while subsidies for activities that create positive externalities, like planting trees, can increase social welfare, they may not always do so without unintended consequences. For example, if the government gives money to people to plant trees, it encourages more tree planting, which helps the environment. However, this might lead to people planting trees in places where they shouldn't, like near power lines, which could cause problems. Additionally, the cost of the subsidy might divert funds from other important areas, like education or healthcare, which could reduce overall welfare. Therefore, while subsidies can be beneficial, they need careful planning to avoid negative effects.