Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased tax revenue from cigarette sales
B
Higher healthcare costs due to secondhand smoke exposure
C
Job creation in the tobacco industry
D
Improved public awareness about smoking risks
Understanding the Answer
Let's break down why this is correct
Answer
A negative externality in consumption occurs when a person's actions negatively affect others who are not involved in the activity. In the case of cigarette smoking, one clear example is secondhand smoke, which can harm the health of non-smokers nearby. When someone smokes in a public space, the smoke can drift to others, leading to health problems like respiratory issues or increased risk of diseases for those who breathe it in. This shows that the smoker's choice to enjoy a cigarette has unintended harmful effects on other people around them. Therefore, the negative impact on non-smokers' health exemplifies a negative externality related to cigarette consumption.
Detailed Explanation
When people smoke, others nearby can breathe in the smoke too. Other options are incorrect because Some might think that higher tax money from cigarette sales is a good thing; People might believe that jobs in the tobacco industry are a positive outcome.
Key Concepts
consumption
market failure
cigarette smoking
Topic
Negative Externalities in Consumption
Difficulty
hard level question
Cognitive Level
understand
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