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 candidatesB. Increased funding for oceanic research effortsC. Renewed interest among students in the humanitiesD. Tighter federal oversight laws and restrictions

Answer 1

D. Tighter federal oversight laws and restriction

Step-by-step explanation:

Positive externalizes refers to the things that is not directly involved in the exchange between consumers/producers, but will influence the market as a whole.

In the example above,

Public outcry toward the toxic dumping might encourage the government to make preventive measures on other areas. This can lead to the creation of Tighter federal oversight laws and restriction.

This will heavily benefit the market because the consumers would not experience the negative aspect for worsening environment from the products that they buy, and the producers could compete in a more healthy/humanly manner.