A Tax on Cigarettes Will Have the Effect of Properly

question 33

Multiple Choice

A tax on cigarettes will have the effect of properly dealing with the externality unless the tax

• A)is lower than the marginal external costs.
• B)is so high that it generates a black market.
• C)causes people to use smoke less.
• D)is lower than the marginal external costs or it is so high that it generates a black market.

---

Definitions:

Clostridium Difficile

A bacterium that can cause symptoms ranging from diarrhea to life-threatening inflammation of the colon, often associated with antibiotic use.

Tuberculosis

An infectious disease caused by the bacterium Mycobacterium tuberculosis, primarily affecting the lungs but can spread to other organs.

MRSA Infection

An infection caused by methicillin-resistant Staphylococcus aureus, a type of bacteria that is resistant to many antibiotics, making it difficult to treat.

Bloodborne Pathogen

Microorganisms in human blood that can cause diseases, including viruses such as HIV and hepatitis.