If smokers are less productive in the workplace and the law were to prohibit differential pay on the basis of smoking behavior,then smoking would:

Question

Quizplus · Accepted Answer

If smokers are less productive in the workplace and the law were to prohibit differential pay on the basis of smoking behavior, then non-smokers would effectively be subsidizing the lower productivity of smokers. This subsidy would be a negative externality, as it would impose costs on non-smokers who are not responsible for the lower productivity. Therefore, B is the correct choice.

If Smokers Are Less Productive in the Workplace and the Law