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.

---

Definitions:

Technical Manuals

Documents that provide instructions, specifications, and other essential information for machinery, equipment, or software.

Real Estate Agent Licensing

The process of obtaining official permission to operate as a real estate agent, typically involving coursework and passing a licensing exam.

Five-Part Reading System

A comprehensive reading strategy that includes components such as phonics, phonemic awareness, vocabulary, reading comprehension, and fluency.

SQ3R Reading System

A reading comprehension method that stands for Survey, Question, Read, Recite, and Review, designed to improve understanding and retention of written information.