In the Case in Point on Externalities, Irrationality, and Smoking

Multiple Choice

In the Case in Point on Externalities, Irrationality, and Smoking, economists Gruber and Mullainathan determined that people with a propensity to smoke:

A) did not act in a manner consistent with bounded willpower or time inconsistency.
B) had constant utility as excise taxes increased because of perfectly inelastic demand.
C) would have higher utility as a result of higher excise taxes.
D) would gain more utility as a result of lower excise taxes.