A(n) ______ subsidy is a subsidy on a good with external benefits.
A) specific
B) ad valorem
C) Orwellian
D) Pigouvian

Name: A(n) ______ subsidy is a subsidy on a good with external benefits. A) specific B) ad valorem C) Orwellian D) Pigouvian
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A Pigouvian subsidy is a subsidy on a good with external benefits, which aims to correct market failure due to externalities. It is named after economist Arthur Pigou, who advocated for such subsidies to offset negative externalities.

A(n) ______ Subsidy Is a Subsidy on a Good with External