1) Driving causes pollution, which is a source of a negative externality. Suppose it costs $1.50 to produce each gallon of gasoline for a firm, and using a gallon of gasoline for driving causes $0.30 in damage to the environment. What is the social cost of each gallon of gasoline? a. $0.30 b. $1 c. $0 d. $1.50 e) $1.80 2) The government introduces a new tax on consumers of ice cream. It will collect $2 from the consumers for each pint of ice cream traded. If 1,000 pints of ice cream are traded in the market this week, how much did the government earn in total from the tax on ice cream consumption this week? Select one: a. $2000 b. $1000 c. $1 d. $0 e. $20