Land Economics

Question 1

One of the major factors of production which is supplied by nature without the aid of man.
May include not only the earth surface, both land and water, but also anything that is attached to the earth’s surface, including all natural resources in their original state, such as mineral deposits, wildlife, and timber.

Answer 1

Land

Question 2

Valuation of land as if vacant of land and improvements on the land for the benefit of the land is an economic concept. Whether vacant or improved.

Answer 2

Real Estate

Question 3

Value is created by the real estate’s utility, or capacity to satisfy the needs and wants of human societies.

Answer 3

.

Question 4

6 factors contributing to real estate

Answer 4

1. General Uniqueness
2. Durability
3. Potential
4. Features of Location
5. Relatively limited supply
6. The specific usefulness of a given site.

Question 5

Are concerned with property?

Answer 5

All appraisals

Question 6

Inherent rights of ownership and future benefits of tangible and intangible assets and is taken to mean any right or interest reflecting a source or attribute of wealth.
This word, used without further qualifications, may refer to real property, personal property; or other types of property such as businesses and financial interests, or a combination thereof.

Answer 6

Property

Question 7

Movable physical assets.
Anything that is not part of real estate.

Answer 7

Personal Property

Question 8

Consists of land and all improvements on and to the land. Synonymous with real estate. Real property consists of right in this. (the physical thing)

Answer 8

Realty

Question 9

Difference between real property (rights in realty) and realty (the physical thing)

Answer 9

Real property rights that are transferred and valued in the market and not the real estate.

Question 10

6 Basic rights of private ownership of property

Answer 10

1. Possession
2. Control
3. Enjoyment
4. Disposition or use
5. Exclusion
6. Right not to exercise any of the above right.

Question 11

The term used to describe the full set of private ownership rights.

Answer 11

Bundle

Question 12

States that there rights are both divisible and separable, i.e. they may be exchanged in whole or in part.

Answer 12

“Bundle of rights theory”

Question 13

In every appraisal what are the rights that are needed to be identified?

Answer 13

What rights?
What part of the total bundle?

Question 14

Land values are determined by?

Answer 14

1. Demand
2. Supply

Question 15

Factors that shift the demand for and supply of agricultural land

Answer 15

1. Competing uses for land
2. Changes in agricultural productivity
3. Speculative forces
4. Potential of land to hedge against inflation
5. Amenity values

Question 16

Reasons why individuals hold land other than Production, that is why only a limited amount of land is offered on the market every year:

Answer 16

1. Prestige value
2. Lifestyle value
3. Family traditions
4. Storing wealth

Question 17

2 reasons for selling a land

Answer 17

1. Retirement
2. Death of the owner

Question 18

The price paid annually for the exclusive right (a monopoly) to use a certain location, piece of land or other natural resource.

Answer 18

Land rent

Question 19

People = receives wages for work
Capital = receives interest for investment

Answer 19

Land = receives rent for the exclusive use of a location

Question 20

The one that created land value should be paid for the exclusive use of a land site. The payment is in the form of a land tax.

Answer 20

Equity and efficiency

Question 21

Most people think that land rent contributes only a small insignificant portion of value.

Answer 21

But as societies progress, land has become the predominant force in determining the progress or poverty of all people within a community.

Question 22

Land in major or cities is so costly that people are forced to move further away and travel great distances in order to get to work and social attractions.

Answer 22

In the more developed countries of the world, land rent represents more than 40% of gross annual production.

Question 23

Why does The rent of land, however, serves no such incentive function?

Answer 23

Because the supply of land is fixed. The same amount is available no matter how high or low the price.

Question 24

Buildings are not part of this. This is the result from the desire made by everyone who lives within a community to use land.

Answer 24

Land Rent

Question 25

The only source of revenue that could be taken for community purposes without having any negative effect on the productive potential of the economy.

Answer 25

Economic Rent