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In the case above, Negative externalities result in costs borne by third parties.
<h3>What is the outcome from negative externalities?</h3>
A negative externality is one that is found if the production or consumption of a product is said to come about due to a cost to a third party.
Note that its example is Air and noise pollution and as such, In the case above, Negative externalities result in costs borne by third parties.
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Answer: The president proposes a budget that reduces federal spending on education and health care, areas traditionally controlled by state governments.
Explanation:
The scenario that would most likely have been opposed by the Republican Party during the Reagan administration is option D "The president proposes a budget that reduces federal spending on education and health care, areas traditionally controlled by state governments".
This is the right option because according to the passage, the size and influence of the federal establishment is to be curbed and there should also be a distinction between the powers granted to the federal government and those reserved to the states or to the people.
The option would be opposed during the Reagan administration since it shows that the federal government wants to interfere with state matters.
