Final answer:
The true statement about the societal costs of tobacco use is that tobacco users contribute to an overall loss of productivity, not just among themselves, but across society. Taxes on tobacco are intended to generate revenue and discourage use, but mainly result in higher prices due to inelastic demand.
Step-by-step explanation:
The statement about the societal costs of tobacco use that is TRUE is that tobacco users contribute to an overall loss of productivity. This encompasses various aspects of society, not only affecting the smokers themselves. Because demand for tobacco is inelastic, taxes on tobacco products primarily result in higher prices for consumers rather than a significant decrease in consumption. These taxes aim to raise tax revenue for the government and discourage cigarette consumption. However, since the tax burden tends to fall on consumers due to the inelastic nature of the demand, the primary effect is an increase in prices rather than a significant drop in tobacco use. Furthermore, the societal costs also include increased healthcare expenses, which are not solely borne by tobacco users but are also shared by the wider community through increased insurance premiums and public health costs.