Final answer:
One possible positive externality of closing a military base is the availability of land for redevelopment, leading to economic growth and improved quality of life. However, a possible negative externality is the loss of employment opportunities and economic decline in the community.
Step-by-step explanation:
The closing of a military base can bring both positive and negative externalities. A positive externality is the availability of land for redevelopment. As the military base closes, the land can be repurposed for housing, parks, or commercial development, fostering economic growth, job creation, and an enhanced quality of life in the surrounding area. This positive externality contributes to the revitalization of the community.
However, a potential negative externality is the loss of employment opportunities for local residents. Military bases typically employ a substantial number of people, and their closure can lead to job losses, causing economic decline and increased unemployment rates in the community. This negative externality poses social challenges such as heightened poverty levels and can necessitate efforts for economic diversification and retraining programs to mitigate the adverse impact on the affected population. The dual nature of these externalities highlights the complex and multifaceted consequences associated with the closure of military bases.