Suppose That Smoking Creates a Negative Externality

question 409

Multiple Choice

Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette market, then

• A)the equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked.
• B)the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.
• C)the equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked.
• D)There is not enough information to answer the question.

---

Definitions:

Religious Development

The progression of individuals’ beliefs, practices, and understanding regarding spirituality and religious affiliations throughout their life.

Moral Reasoning

Moral reasoning involves the processes by which individuals make decisions about what is right or wrong, often influenced by cultural, social, and personal values.

Rights-Based Reasoning

A form of ethical thinking that focuses on the entitlements and liberties individuals should have by virtue of their human rights.

Authoritarian Parenting

A parenting style characterized by strict rules and expectations, with little negotiation or flexibility.