EBK PRINCIPLES OF MICROECONOMICS (SECON
EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 7, Problem 2SP

(a)

To determine

Whether the activities of late-night road construction create a negative or positive externality.

(b)

To determine

Whether the activity of an excavating company polluting a local stream with acid rock creates a negative or positive externality.

(c)

To determine

Whether the activity of a house owner whose property backs up on a city park enjoying the sounds of kids creates a negative or positive externality.

(d)

To determine

Whether the activity of a student using cell phone during class creates a negative or positive externality.

(e)

To determine

Whether the activity of planting a wild flower along the local highway creates a negative or positive externality

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1. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate fund, and the third is a (riskless) T-bill money market fund that yields a rate of 8%. The probability distributions of the risky funds have the following characteristics: Standard Deviation (%) Expected return (%) Stock fund (Rs) 20 30 Bond fund (RB) 12 15 The correlation between the fund returns is .10.
Frederick Jones operates a sole proprietorship business in Trinidad and Tobago. His gross annual revenue in 2023 was $2,000,000. He wants to register for VAT, but he is unsure of what VAT entails, the requirements for registration and what he needs to do to ensure that he is fully compliant with VAT regulations. Make reference to the Vat Act of Trinidad and Tobago and explain to Mr. Jones what VAT entails, the requirements for registration and the requirements to be fully compliant with VAT regulations.
Can you show me the answers for parts a and b? Thanks.
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