When a Negative Externality Exists,as in the Case of Pollution,the

question 53

Essay

When a negative externality exists,as in the case of pollution,the government may be able to restore the social optimum using three different corrective measures.Name them.

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Definitions:

Defense Budget

The defense budget is the portion of a national budget that is allocated to military spendings, including salaries, training, operations, and equipment.

Oil Crisis

A period marked by major interruptions in oil supply and subsequent increases in oil prices, often due to geopolitical tensions or conflicts.

Military Coalition

An alliance formed between multiple countries or groups to achieve a common military goal, often seen in contexts of war or peacekeeping missions.

Saudi Arabia

A country in the Middle East known for its vast oil reserves, playing a significant role in global energy markets and geopolitics.