The negative effect of cigarette smoking on a smoker is an externality.

Question

Quizplus · Accepted Answer

An externality refers to a cost or benefit incurred or received by a third party who did not choose to incur that cost or benefit. The negative effect of cigarette smoking on the smoker themselves is not an externality because it directly affects the individual choosing to smoke. Externalities from smoking would include effects on non-smokers, such as secondhand smoke.

The Negative Effect of Cigarette Smoking on a Smoker Is