Governments may use public policy to encourage the production of goods that generate externalities

The correct answer is: positive.

Explanation:

Positive or external benefits refer to the situation when the benefits of a production process go to a third party which is not directly involved in the process of production.  

Governments may use public policy to encourage the production of goods that generate positive externalities. It can do so by providing subsidies to the producers for the goods and services that create external benefits.  

The government can also discourage the production of goods and services that create external costs by imposing taxes on them.

explanation:

kool beans

the answer is a. $209,000