Suppose the Government Designates Certain Areas Within a Community to Be

question 67

Multiple Choice

Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land. What happens to land not classified as "wetlands" within the community? (i)
The price of non-wetland land will rise.(ii)
The marginal product of non-wetland land will fall.
(iii)
The marginal product of non-wetland land will rise.

• A)(i) and (ii) only
• B)(ii) only
• C)(i) and (iii) only
• D)(iii) only

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Definitions:

Raw Materials Inventory

Stocks of basic materials that are used in the production process before undergoing manufacturing.

Work-in-Process Inventory

This refers to the goods that are in the middle of the manufacturing process but are not yet completed.

Manufacturing Overhead-Control

An account that aggregates all indirect manufacturing costs, used to control and allocate overhead costs during production.

Accounts Receivable

An asset that indicates amounts owed by customers.