A Tax on Cigarettes

question 2

Multiple Choice

A tax on cigarettes:

• A) increases total surplus.
• B) increases efficiency in the market.
• C) will increase both total surplus and efficiency in the market.
• D) like any tax, will always reduce surplus and efficiency in markets.

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Definitions:

Nutrient Recycling

The process of reusing essential elements and compounds, such as carbon and nitrogen, within an ecosystem.

Energy Use

Pertains to the consumption of energy sources by human societies to power industries, homes, transportation, and other aspects of modern life.

Net Primary Productivity

The rate at which plants and other photosynthetic organisms produce organic compounds in an ecosystem beyond what they use for respiration.

Human Overharvesting

The excessive harvesting of natural resources which leads to the depletion of those resources and a loss of biodiversity.