Governments can try and correct the problem of negative externalities from smoking by

Question

Quizplus · Accepted Answer

Using taxes and fines to penalize smokers is a way for governments to correct the problem of negative externalities from smoking. This is because smokers impose costs on society through increased healthcare expenses, lost productivity, and environmental damage, among other factors. Taxes and fines can help to offset these costs and discourage people from smoking, which can also bring health benefits to individuals and reduce the burden on the healthcare system. Providing free medical care or investing in tobacco companies would not address the negative externalities from smoking, and using subsidies to lower the cost of buying cigarettes would only encourage more people to smoke, exacerbating the problem.

Governments Can Try and Correct the Problem of Negative Externalities