Suppose That Smoking Creates a Negative Externality

question 184

Multiple Choice

Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette externality, then

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

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Definitions:

Culture Clusters

Groupings of cultures that share similar characteristics and values.

Global Leadership Dimensions

The attributes, behaviors, and practices that enable leaders to successfully operate and influence on an international scale.

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A multi-phase, multi-method project examining leadership and cultural values across the world.

Societal Cultures

The shared norms, values, traditions, and behaviors of a group of people that define their way of life.