Bre Kelley, chapter 3, question 6

Most decisions within economics have either positive or negative externalities.  However, some have both positive and negative externalities.  Cigarettes is an example.  Cigarettes kill the people who smoke them.  Secondhand smoke harms people around the smoker.  Smokers generate extra healthcare costs while non-smokers get their health care taxes increased to remove part of a smoker's lung.  These are all negative externalities.  On average, smokers die seven years earlier than non-smokers and don't live long enough to receive their retiring benefits.  Therefore non-smokers receive part of them, getting more benefits than they initially paid for.  These externalities only effect long-time smokers, but cigarettes have been shown to be very addictive.  There are positive and negative externalities in everything we do that effects the economy.