📚 Learning Guide
Negative Externalities in Consumption
hard

Which of the following best describes the social costs associated with cigarette smoking and the need for regulations to mitigate these costs?

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Choose the Best Answer

A

Social costs are only related to healthcare expenses incurred by smokers.

B

Regulations can help internalize the external costs of smoking, making smokers pay for the broader impact.

C

Social costs are irrelevant in the context of personal choice regarding smoking.

D

Regulations should focus only on the economic benefits of the tobacco industry.

Understanding the Answer

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Answer

Cigarette smoking creates social costs, which are the negative effects that impact people who do not smoke. For example, when someone smokes in a public place, the smoke can harm the health of nearby people and contribute to higher healthcare costs for society. These costs are not just paid by smokers but also by everyone through increased medical bills and lost productivity. Regulations, like banning smoking in certain areas or taxing cigarettes, help to reduce these harmful effects and protect the health of the community. By addressing these negative externalities, regulations aim to make smoking less appealing and encourage healthier choices for everyone.

Detailed Explanation

Regulations help make smokers pay for the harm their smoking causes to others. Other options are incorrect because This answer suggests that costs only come from healthcare; This option ignores that personal choices can harm others.

Key Concepts

cigarette smoking
social costs
regulations
Topic

Negative Externalities in Consumption

Difficulty

hard level question

Cognitive Level

understand

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