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Secondhand cigarette smoke is an example of a(n) ________. Group of answer choices public good. economy of scale. externality. moral hazard.
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Secondhand cigarette smoke is an example of a(n) ________. Group of answer choices public good. economy of scale. externality. moral hazard.

User Wowa
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Answer:

externality

Step-by-step explanation:

We define an externality in economics as the cost or benefit imposed by one or several parties on another person who never directly agreed to incur that particular cost or benefit.

The concept of externality was coined by Arthur Pigou around 1920.

The second hand smoker never gave any direct consent or agreement yet bears the cost of another person's action.

User Banghua Zhao
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