Alice Has Inherited 21 Acres of Land in Alaska

question 48

True/False

Alice has inherited 21 acres of land in Alaska. Since she has no urge to visit Alaska, she has never seen the land. Ron and Jane have moved onto the land and erected a home. They have started using the land and have even fenced much of it in. There is no mortgage on the land, and Alice doesn't receive a tax bill because Ron and Jane pay the yearly taxes. After the statutory period in Alaska has run, Ron and Jane would become the owners of the land.

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Definitions:

Price of Output

The amount of money charged for a product or service produced by a business or an economy.

Labor

The application of human physical and intellectual labor in the creation of goods and services.

Capital Equipment

Long-term assets acquired or used by a business for the production of goods and services, such as machinery, buildings, and vehicles.

Market Price

The current price at which an asset or service can be bought or sold in a given market, determined by supply and demand.