IAAO 101 Study Guide Questions with Correct
Answers
Basic responsibilities of tax assessors
Discover, List, and Value
What are the rights of ownership? Bundle of rights
Sell, Lease, Use, Give away, Enter or Leave, Right to not do anything. (S.L.U.G.E.R.)
What are the Government restrictions placed on bundle of rights?
T.E.P.E. Taxation, Eminent domain, police power, escheat
In order for a property to have value, it must have?
Utility, scarcity, desirability, and purchasing power.
Anticipation
Present worth of future benefits.
Balance
Maximum value is obtained when the four agents of production attain a state of equilibrium.
Change
The tendency of social economic forces affecting supply and demand to shift over time
Competition
Availability must be in harmony with demand. If one or the other is in excess, prices will
increase or decrease.
Conformity
, The value of property depends, in part, on its relationship to its surroundings.
Consistent Use
Market value of a property tends to be set by the cost of acquiring an equally desirable and
valuable property.
Contribution
The value for a component of property depends on its contribution to the whole.
Increasing/Decreasing Returns
After a certain point, the addition of successive increments of one agent of production
decreases future incomes or amenities.
Progression / Regression
The value of a lower priced property is increased by its association with better properties of
the same type and vice versa.
Substitution
Market value of a property tends to be set by the cost of acquiring an equally desirable and
valuable property.
Surplus Productivity
Net income remaining after the costs of labor, management, and capital have been paid
Supply
The amount of goods that producers are willing to sell under various conditions during a
given period.
Demand
Answers
Basic responsibilities of tax assessors
Discover, List, and Value
What are the rights of ownership? Bundle of rights
Sell, Lease, Use, Give away, Enter or Leave, Right to not do anything. (S.L.U.G.E.R.)
What are the Government restrictions placed on bundle of rights?
T.E.P.E. Taxation, Eminent domain, police power, escheat
In order for a property to have value, it must have?
Utility, scarcity, desirability, and purchasing power.
Anticipation
Present worth of future benefits.
Balance
Maximum value is obtained when the four agents of production attain a state of equilibrium.
Change
The tendency of social economic forces affecting supply and demand to shift over time
Competition
Availability must be in harmony with demand. If one or the other is in excess, prices will
increase or decrease.
Conformity
, The value of property depends, in part, on its relationship to its surroundings.
Consistent Use
Market value of a property tends to be set by the cost of acquiring an equally desirable and
valuable property.
Contribution
The value for a component of property depends on its contribution to the whole.
Increasing/Decreasing Returns
After a certain point, the addition of successive increments of one agent of production
decreases future incomes or amenities.
Progression / Regression
The value of a lower priced property is increased by its association with better properties of
the same type and vice versa.
Substitution
Market value of a property tends to be set by the cost of acquiring an equally desirable and
valuable property.
Surplus Productivity
Net income remaining after the costs of labor, management, and capital have been paid
Supply
The amount of goods that producers are willing to sell under various conditions during a
given period.
Demand
