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

question 3

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 clean up due to the presence of cigarette butts.
• D) Price of a pack of cigarettes.

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Definitions:

Face Amount

The nominal value of a security stated by the issuer, for example, the value printed on the face of a bond.

Interest Rate

The percentage of a loan charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage rate.

Note Issuance

The process of creating and distributing a promissory note, which is a financial instrument indicating a promise to pay.

Interest Expense

The financial burden on an entity for using loans or credit over a certain period.