Review Question 01-03 Which of the following are examples of activities accompanied by external costs or benefits? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Buying a used car. O Buying a painting at an auction. Inventing something which is new and useful and can be patented. Driving a car. O Inventing something which is new and useful and cannot be patented.Smith recently faced a choice between being {a} an economics professor. which pays $50,000i'yr, or {b} a safari leader, which pays $45,000r'yr. After careful deliberation, Smith took the safarijob, but it was a close call. 'For a dollar more,' he said, 'l'd have gone the other way.' Now Smith's brotherinlaw approaches him with a business proposition. The terms are as follows: Smith must resign his safari job to work full-time in his brother-in-law's business. Smith must give his brother-inlaw an interestfree loan of$50.000, which will be repaid in full if and when Smith leaves the business. {Smith currently has much more than $50,000 in the bank.) The business will pay Smith a salary of$55,000yr. He will receive no other payment from the business. The interest rate is1 36 per year. Apart from salary considerations, Smith feels that working in the business would bejust as enjoyable as being an economics professor For simplicity, assume there is no uncertainty regarding either Smith's salary in the proposed business or the security of his monetary investment in it. Should Smithjoin his brotherinlaw? No V Instructions: Enter your answer as a whole number. Enter "0" if not applicable. And, if so, how small would Smith's salary from the business have to be to make it NOT worthwhile for him toioin'? $ is If not, how large would Smith's salary from the business have to be to make it worthwhile for him tojoin? $ i'yr Problem 01-02 (algo) Tom is a mushroom farmer. He invests all his spare cash in additional mushrooms, which grow on otherwise useless land behind his barn. The mushrooms double in size during their first year, after which time they are harvested and sold at a constant price per pound. Tom's friend Dick asks Tom for a loan of $240, which he promises to repay after 1 year. How much interest will Dick have to pay Tom in order for Tom to be no worse off than if he had not made the loan? Instructions: Enter your answer as a whole number. $ 480