Education produces a positive externality, and this has been used as a justification for having the government subsidize education to internalize the externality. Just because a positive externality exists does not mean that a subsidy will be efficient, even in theory, however. Explain the theoretical arguments that a subsidy may be inefficient, even when a positive externality exists, using graphs to illustrate your arguments. After examining the arguments on both sides, which side is more plausible to you? Should education be subsidized?