Which of the Following Would Be a Private Cost to a Cigarette

question 181

Multiple Choice

Which of the following would be a private cost to a cigarette smoker?

• A) Cost to the employer of the higher health insurance premiums due to the hiring of a smoker.
• B) Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.
• C) Cost to the city of extra park cleanup due to the presence of cigarette butts.
• D) Price of the pack of cigarettes.
• E) Cost to the government to pay the hospital expenses of indigent smokers.

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Definitions:

Financial Leverage

Financial leverage refers to the use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the income or capital gain from the assets will exceed the cost of borrowing.