Question

A toxic dumping site leaks into a local water supply and prompts a public outcry. The local and then the state government each take actions to clean up the site and to fine the company for damages. Which of the following would be a potential positive externality for the national environment?. . A. More funds for pro-business political candidates. . B. Increased funding for oceanic research efforts. . C. Renewed interest among students in the humanities. . D. Tighter federal oversight laws and restrictions

Answer 1

D. tighter federal oversight laws and restrictions.

By having strict laws, more companies will avoid polluting the environment and the budget that would otherwise go in cleaning those environments can be shifted to other sectors that need attention.

Answer 2

To overcome this problem tighter federal oversight laws and restrictions.