Lung cancer resulting from smoking is an example of an externality.

Question

Quizplus · Accepted Answer

Sometimes the sale or consumption of products may benefit or harm other people who are not involved in the transaction and didn't pay for the product.In these cases,the government may use taxation and/or regulation to compensate for or eliminate the externalities (This is why there are restrictions and requirements placed on tobacco advertisers).An externality is a social cost.

Lung Cancer Resulting from Smoking Is an Example of an Externality