BUSI 300 COMPREHENSIVE STUDY GUIDE 2026
◉ Absorption rate. Answer: Rate at which real estate units are sold
in a market during a particular time period
◉ Asset market. Answer: Market where land and buildings are
traded with primary concern being the buying and selling of re
assets
◉ basic goods. Answer: Exports production generating new money
and growth in domestic econ
◉ Bid rent. Answer: Max amount firm or household willing to pay to
occupy land for a given time period
◉ Capitalization Rate. Answer: The rate of return considered to be a
reasonable return on investment - given the risk. Ratio of rent to
price of asset
◉ Central place theory. Answer: Large cities contain much more
diverse set of Econ activities than small
, ◉ Coase theorem. Answer: States that private bargaining will result
in an efficient allocation of resources. Requires well defined
property rights, perfect information, and zero transaction costs
◉ Congestion dependent costs. Answer: Costs that are a function of
the amount of traffic on the road (increases travel time, fuel usage)
◉ Congestion independent costs. Answer: Costs largely incurred by
drivers before get on road - cost of owning or leasing, insurance,
time and fuel cost of travel absent of congestion
◉ Congestion toll. Answer: Difference between PC and TC at to
socially optimal traffic volume
◉ Discount rate. Answer: Interest rate used to adjust future cash
flows to a present value by taking into account the time value of
money as well as uncertainty of future cash flows
◉ Downs law. Answer: Congestion rises to meet max capacity
◉ Economies of scale. Answer: Cost advantages that firm obtains
due to size where larger firm becomes the lower the cost per unit
◉ Absorption rate. Answer: Rate at which real estate units are sold
in a market during a particular time period
◉ Asset market. Answer: Market where land and buildings are
traded with primary concern being the buying and selling of re
assets
◉ basic goods. Answer: Exports production generating new money
and growth in domestic econ
◉ Bid rent. Answer: Max amount firm or household willing to pay to
occupy land for a given time period
◉ Capitalization Rate. Answer: The rate of return considered to be a
reasonable return on investment - given the risk. Ratio of rent to
price of asset
◉ Central place theory. Answer: Large cities contain much more
diverse set of Econ activities than small
, ◉ Coase theorem. Answer: States that private bargaining will result
in an efficient allocation of resources. Requires well defined
property rights, perfect information, and zero transaction costs
◉ Congestion dependent costs. Answer: Costs that are a function of
the amount of traffic on the road (increases travel time, fuel usage)
◉ Congestion independent costs. Answer: Costs largely incurred by
drivers before get on road - cost of owning or leasing, insurance,
time and fuel cost of travel absent of congestion
◉ Congestion toll. Answer: Difference between PC and TC at to
socially optimal traffic volume
◉ Discount rate. Answer: Interest rate used to adjust future cash
flows to a present value by taking into account the time value of
money as well as uncertainty of future cash flows
◉ Downs law. Answer: Congestion rises to meet max capacity
◉ Economies of scale. Answer: Cost advantages that firm obtains
due to size where larger firm becomes the lower the cost per unit
