Which of the following would be an external cost to the consumption of cigarettes?
A) Price of a pack of cigarettes.
B) Loss of income resulting from extra missed days of work.
C) Higher life insurance premiums due the practice of smoking.
D) The loss in utility received because the smoker must stand outside her office building in the winter to smoke.
E) Increased risk of cancer to the nonsmoking passengers in the smoker's carpool.

Question

Quizplus · Accepted Answer

Increased risk of cancer to the nonsmoking passengers in the smoker's carpool is an example of an external cost, as it is a cost imposed on others who do not choose to smoke. The other options are either direct costs of smoking or costs that only affect the smoker themselves.

Which of the Following Would Be an External Cost to the Consumption