Bob Owns 5 Acres of Land

question 422

Multiple Choice

Bob owns 5 acres of land. Bob sells the land to a real estate developer who builds a subdivision with 10 houses. The land is an example of a good that is

• A)both rival in consumption and excludable.
• B)neither rival in consumption nor excludable.
• C)excludable, but not rival in consumption.
• D)rival in consumption, but not excludable.

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Definitions:

Professional Labour Costs

Expenses associated with employing specialized professionals, such as engineers, lawyers, or doctors, including salaries, benefits, and training costs.

Manufacturing Businesses

Companies involved in the production of goods by transforming raw materials into finished products.

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Inventory

The stock of goods or materials held by a company, typically used in production or sold to customers.