Pigovian analysis indicates that a subsidy should be awarded when economic activity creates social benefits.

Name: Pigovian analysis indicates that a subsidy should be awarded when economic activity creates social benefits.
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Pigovian analysis suggests that subsidies are appropriate for economic activities that generate positive externalities or social benefits beyond the private gains to producers and consumers, to encourage more of that beneficial activity.

Pigovian Analysis Indicates That a Subsidy Should Be Awarded When