Chapter 4 questions

1.       The fixed location of land makes real estate as an asset different from any other product of investment opportunity. (T/F)

2.       The opportunity cost of commuting to work is spending that time sleeping. (T/F)

3.       A city can only have a certain amount of CBD’s. (T/F)

4.       The centric circle growth model can be accredited to the 19^th century economist Van Thunen. (T/F)

5.       Transportation is an important factor in the development of modern urban areas. (T/F)

6.       What would be considered a nonbasic industry?

a.       Cosmetology

b.      Agriculture

c.       Entertainment

d.      Technology

7.       What is not an example of a transportation cost?

a.       Time

b.      Insurance

c.       Road repairs

d.      Wear and tear

8.       The maximum amount a market participant is willing to pay for certain property location is an example of

a.       Highest and best use

b.      Bid rent curve

c.       Land value gradient

d.      Economies of agglomeration

1. T

2. T

3. F

4. F

5. T

6. A

7. C

8. B