Which of the Following Illustrates the Concept of External Cost

Multiple Choice

Which of the following illustrates the concept of external cost?

A) Bad weather reduces the size of the wheat crop.
B) A reduction in the size of the wheat crop causes income of wheat farmers to fall.
C) Smoking harms the health of the smoker.
D) Smoking harms the health of nearby nonsmokers.
E) Public health services reduce the transmission of disease.