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Passive smoke is an example of a negative externality

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Passive smoke is an example of a negative externality. To reduce this negative externality, the government should

A. grant subsidies to tobacco companies and encourage more cigarette production.

B. grant subsidies to tobacco companies and discourage more cigarette production.

C. reduce taxes on cigarettes and encourage more cigarette production.

D. impose taxes on cigarettes and encourage less cigarette production.

E. ban the production of cigarettes and other tobacco-related goods.