IAAO 201 EXAM ACTUAL

IAAO 201 EXAM (ACTUAL /

QUESTIONS WITH 100% CORRECT VERIFIED

ANSWERS

Land - <>>An immovable and indestructible three-dimensional area consisting of a portion of the earth's surface, the space above and below the surface, and everything growing on or permanently affixed to it.

Principle of Increasing and Decreasing Returns - <>>Increasing returns - when one of the Agents of Production is added to fixed amounts of the other three agents, benefits increase.Decreasing returns - The point at which the process of increasing returns reaches the maximum, and begins to decline, resulting in diminishing returns.

Principle of Consistent Use - <>>Setting the value of a property based upon a single use for the entire property.Land and improvements are valued on the same use basis.

Principle of Contribution - <>>Any component is valued based upon its contribution to the value of the whole.

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Location - <>>The most significant physical factor in residential land.

Supply is influence by: - <>>Cost to produce, cost

of other goods, entrepreneurial expectations, and the number of sellers.

Demand is influenced by: - <>>Consumer tastes

and preferences, Consumer income, the price of substitute and complementary commodities, consumer expectations of what will happen in the future, the price of a commodity.

Change in quantity supplied - <>>occurs only when the price of a commodity changes. Price is the only thing that changes.

Change in quantity demanded - <>>occurs only when the price of a commodity changes, and all of the elements of demands stay the same.

Equilibrium - <>>The point at which the forces of supply and demand meet.

General Land Valuation Model - <>>LV = PGI- C/R LV= Land Value

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