Multiple Choice
Which of the following would be an external cost in the market for cigarettes?
A) price of a pack of cigarettes
B) loss of income for the smoker resulting from extra missed days of work
C) higher life insurance premiums paid by the smoker due to smoking
D) loss in utility in smoking by the smoker because the smoker must stand outside her office building in the cold winter to smoke
E) increased risk of cancer to the nonsmoking passengers in the smoker's car pool
Correct Answer:

Verified
Correct Answer:
Verified
Q92: A system of nonattenuated (uncompromised) property rights
Q93: The space program of the 1960s is
Q94: Third-party beneficiaries are called<br>A) polluters<br>B) indirect property
Q95: Cindy discovers that when she goes to
Q96: Sometimes the government deals with externalities by
Q98: Supply and demand curves can only reflect<br>A)
Q99: Economic activity initiated by market participants imposes
Q100: The social (or true) cost of producing
Q101: In the case where cigarette firms conceal
Q102: Suppose that a hog-producing firm has been