1. If the production of a good creates pollution, then the
A. marginal social cost curve lies above the marginal private cost curve.
B. marginal social cost curve lies below the marginal private cost curve.
C. marginal social benefit curve lies below the marginal private benefit curve.
D. marginal social benefit curve lies above the marginal private benefit curve.
2. In terms of influences on the demand curve for cellphones, which one of the following is fundamentally different from the others?
A. The price of cellphones.
B. The price of landline phones.
C. The number of cellphone buyers.
D. The income of consumers.
E. Expectations of future cellphone products.