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:

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Refers to the act of removing one's clothes, often associated with preparations for bathing, sleep, or sexual activity.

Zoophilia

A sexual interest characterized by an attraction to animals other than humans.

Sexual Pleasure

The physical and/or emotional satisfaction derived from sexual activities or thoughts.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia or Metazoa, characterized by their ability to move voluntarily and consume organic material.