Which of the Following Would Be an External Cost to the Consumption

question 161

Multiple Choice

Which of the following would be an external cost to the consumption of cigarettes?

• A) Price of a pack of cigarettes.
• B) Loss of income resulting from extra missed days of work.
• C) Higher life insurance premiums due the practice of smoking.
• D) The loss in utility received because the smoker must stand outside her office building in the winter to smoke.
• E) Increased risk of cancer to the nonsmoking passengers in the smoker's carpool.

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Definitions:

Population

The total number of people or inhabitants in a specific area or region.

World

The planet Earth, including all of its inhabitants, countries, cultures, and natural features.

Legal Limits

Statutorily defined boundaries within which individuals or entities may operate without facing legal penalties, often relating to speed, age, or intoxication levels.

Authoritarian

A political system in which a single entity or a small group possesses significant control over government and restricts personal freedoms.