Subsidies for positive externalities primarily aim to reduce the gap between __________ and social costs, encouraging more production of beneficial goods.

Subsidies for positive externalities primarily aim to reduce the gap between private benefits and social costs, encouraging more production of beneficial goods. When a good or service has positive externalities, it means that its benefits extend beyond the individual using it to society as a whole, like education or vaccination. However, producers may not see the full value of these benefits, leading to less production than what is socially optimal. By providing subsidies, the government helps cover some of the costs for producers, making it more attractive for them to produce these goods. For example, if a government provides financial support for solar panel installations, it encourages more people to adopt renewable energy, which benefits the environment and society overall.