Multiple Choice
Cigarettes are known to cause negative externalities.Which one of the following will help to reduce the consumption of cigarettes?
A) A subsidy paid to cigarette producers.
B) Compensation paid to the smokers who end up with lung cancer.
C) A special tax allowance for cigarette consumers.
D) A special tax imposed on the production of cigarettes.
E) Compensation paid to cigarette producers for the articles written about their product.
Correct Answer:

Verified
Correct Answer:
Verified
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