Subsidies for positive externalities are to market efficiency as government regulation is to: ?

Subsidies for positive externalities help improve market efficiency by encouraging activities that have benefits for society, like education or healthcare. Similarly, government regulation aims to correct market failures, which occur when the market does not allocate resources efficiently on its own. For example, regulations can limit pollution from factories to protect the environment and public health, ensuring that the costs of pollution are considered. Just as subsidies promote beneficial activities, regulations help manage harmful behaviors that the market might ignore. Both tools are essential for creating a balance between individual actions and the overall well-being of society.