ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Inhaling other people’s smoke, also known as second-hand smoke, can cause diseases in the non-smoking population. Some of the smoking-related health complications include stroke, lung cancer, heart disease, and chronic obstructive pulmonary disease.

Detailed explanation-2: -Cigarettes are harmful to society because they produce a negative externality. This is because the consumption of cigarettes have a spillover effect on third parties and no compensation is paid by anyone. For cigarettes, the benefit of consuming has a greater effect on the consumer than on society.

Detailed explanation-3: -Tobacco use generates a significant economic burden for the entire society and leads to significant negative externalities, including high healthcare costs and lost productivity due to tobacco-attributable diseases.

Detailed explanation-4: -A negative externality exists when the production or consumption of a product results in a cost to a third party. Air and noise pollution are commonly cited examples of negative externalities.

Detailed explanation-5: -Tobacco products such as cigarettes and e-cigarettes have negative consumption externalities in the market in form of addiction. Negative consumption externalities occur when there are undesired and harmful spiller effects to a third party when a product is consumed, and for which no appropriate compensation is paid.