Question

The U.S. Federal government limits the ability for private firms to harvest timber on much government land. This, it is argued, increases the amount of fuel for wildfires which often burn out of control and cost money and manpower to control This suggests that government policy is destined to fail. This suggests that the policy addressing timber harvesting created a negative externality. This suggests that those who harvest timber are prone to starting wildfires. This suggests that the policy addressing one positive externality might have created another positive externality,

Answer 1

This suggests that the policy addressing timber harvesting created a negative externality.

Explanation: The timber harvesting solution led to negative externality in the form of higher wildfire.