Ch. 4 Objective Questions

Ch. 4 Objective Questions

Forrest Miller

1) Von Thunen's formula is _________

a) Property Tax = f(Property Value)

b) Land Value = f(Accessibility)

c) Accessibility = Land Value + Property Tax

d) Land Rent = Accessibility + Property Tax

2) The Three most important Real Estate characteristics are:

a) Location, Time, Price

b) Value, Square foot, Asking Price

c) Situs, Situs, Situs

d) Location, Situs, Price

3) The single land use that produces the highest return or price to a landowner is the definition of what term?

a) Economies of agglomeration

b) Highest and best use of land

c) Efficiency factor

d) Maximum return

T/F

4)  Urban economics definition is the study of country areas, including agriculture layouts and location of farms and migrant workers?

5) The Land Value Gradient is a positive upward sloped line.

6)  The Opportunity cost for buying a piece of real estate is the capital you paid for it?

7)  Fresno, CA has a competitive advantage because of the rich agriculture in the central valley area.

8) Basic Employment is a job in and industry that serves the local population's basic needs.

1) B

2) C

3) B

4) F

5) F

6) F

7) T

8) F