Which of the following would be a social cost?
A) Price of a pack of cigarettes.
B) Cost of the hospitalisation due to smoking related illnesses.
C) Costs of new more efficient equipment to produce cigarettes.
D) Cost of electricity to produce cigarettes.

Question

Quizplus · Accepted Answer

The cost of hospitalization due to smoking-related illnesses is a social cost because it is a cost that is not borne directly by the smoker, but by society as a whole in the form of increased healthcare costs.

Which of the Following Would Be a Social Cost