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.

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Definitions:

Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development that describes how children's intellectual abilities evolve as they grow.

Moral Realism

The philosophical viewpoint asserting that ethical statements refer to objective features of the world, which are independent of human opinion.

Moral Development

The process by which individuals learn to distinguish right from wrong, making ethical decisions and understanding societal norms.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child psychology, especially his theory of cognitive development that describes how children develop intellectual abilities.