RM 450 Exam 1: all Questions and Verified
Answers
With more government control on the real estate market, it is likely for you to see __.
A. residential properties separated from industrial properties
B. factories in a residential area Correct Answer: A is a better answer
Governments use zoning to mitigate negative externalities
If there is no building code and thus the construction quality of houses is unknown, which of the
following more likely happens?
A. There are serious safety issues.
B. Home owners' insurance premiums tend to be low. Correct Answer: A is a better answer
Serious safety issues
Possible market breakdowns: the lemon problem
Poor construction quality higher risk higher insurance premium
The market value of a property: $500,000
Assessment percentage: 85%
Exemption: $50,000
The tax rate is 25 mills
What is the amount of the property tax?
A: $6,375
B: $7,375
, C: $8,375
D: $9,375 Correct Answer: D is correct
Taxable value: 500,000 * 0.85 - 50,000 = 375,000
Tax = (375,) * 25 = 9,375
The market value of a property: $500,000
Assessment percentage: 85%
Exemption: $50,000
The tax rate is 25 mills
What is the effective tax rate
A: 15.22 mills
B: 16.38 mills
C: 18.75 mills
D: 19.12 mills Correct Answer: C: 18.75 mills
(9,,000) * 1000 = 18.75 mills
Which of the following is more likely part of the economic base of State College
A: Penn State University
B: Little Szechuan
C: Debra Noon's Barber Shop
D: College 9 movie theater Correct Answer: A: Penn State University
The multiplier effect is greater for cities
Answers
With more government control on the real estate market, it is likely for you to see __.
A. residential properties separated from industrial properties
B. factories in a residential area Correct Answer: A is a better answer
Governments use zoning to mitigate negative externalities
If there is no building code and thus the construction quality of houses is unknown, which of the
following more likely happens?
A. There are serious safety issues.
B. Home owners' insurance premiums tend to be low. Correct Answer: A is a better answer
Serious safety issues
Possible market breakdowns: the lemon problem
Poor construction quality higher risk higher insurance premium
The market value of a property: $500,000
Assessment percentage: 85%
Exemption: $50,000
The tax rate is 25 mills
What is the amount of the property tax?
A: $6,375
B: $7,375
, C: $8,375
D: $9,375 Correct Answer: D is correct
Taxable value: 500,000 * 0.85 - 50,000 = 375,000
Tax = (375,) * 25 = 9,375
The market value of a property: $500,000
Assessment percentage: 85%
Exemption: $50,000
The tax rate is 25 mills
What is the effective tax rate
A: 15.22 mills
B: 16.38 mills
C: 18.75 mills
D: 19.12 mills Correct Answer: C: 18.75 mills
(9,,000) * 1000 = 18.75 mills
Which of the following is more likely part of the economic base of State College
A: Penn State University
B: Little Szechuan
C: Debra Noon's Barber Shop
D: College 9 movie theater Correct Answer: A: Penn State University
The multiplier effect is greater for cities
