When affluent graduates donate funds to their alma mater to help lower tuition fees for current students, this action exemplifies which of the following?

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an effort to internalize a positive externalityan effort to internalize a negative externalitythe implementation of a Pigouvian taxa regulatory command-and-control measurea market-based subsidy program

Explanation

When wealthy alumni contribute donations to universities aimed at reducing tuition costs for students, they are addressing the positive external benefits of education. This is considered an attempt to internalize a positive externality by encouraging beneficial outcomes that might otherwise be underprovided.