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IAAO -COURSE 201 EXAM QUESTIONS AND CORRECT
ANSWERS 2024/2025 GRADED A+.
Anticipation - (answers)present worth of future benefits
Balance - (answers)max value is obtained when the 4 agents of production attain
a state of equilibrium
Change - (answers)The tendency of social and economic forces affecting supply
and demand to alter over time
Competition - (answers)Availability must be in harmony with demand. If one or
the other is in excess prices will increase or decrease
Conformity - (answers)The value of property depends in part in its relationship to
its surroundings
Consistent Use - (answers)States that a property must be valued with a single use
for the entire property
Contribution - (answers)The basis for applying the adjustments in the sales
comparison approach
Increasing/Decreasing Returns - (answers)After reaching a certain point the
addition of successive increments of one agent of production will decrease future
incomes or amenities
, 2
Progression/Regression - (answers)The value of a lower priced property is
increased by its association with better properties of the same type
Substitution - (answers)Market value of a property tends to be set by the cost of
acquiring an equally desirable and valuable property
Surplus Productivity - (answers)Net income remaining after the cost of labor,
management, & capital has been paid
Supply - (answers)The amount of goods that producers are willing to sell under
various conditions during a given period
Demand - (answers)Quantities of various goods that people are willing to and able
to buy during some period, given the choices available to them
Land - (answers)The surface of the earth and everything above it and beneath it
5 attributes of Land - (answers)Permanent
Unique
Finite supply
Functional
Stationary
, 3
4 Characteristics of Land - (answers)DUST
Natural state of the land before anything is done to it - (answers)raw land
Improvements to land - (answers)everything done to the land that increases its
usefulness without actually placing a structure or building is considered
Improvements on land - (answers)any structures or buildings placed on the land
are considered
Site - (answers)A parcel of land that has been developed to the extent that it is
ready to be build upon for its intended use
Bundle of Rights - (answers)SLUGER
Eminent Domain - (answers)The power of the gov to take land for public use
providing just compensation
Private restrictions - (answers)easements or right of ways
4 Agents of Production - (answers)Land
Labor
IAAO -COURSE 201 EXAM QUESTIONS AND CORRECT
ANSWERS 2024/2025 GRADED A+.
Anticipation - (answers)present worth of future benefits
Balance - (answers)max value is obtained when the 4 agents of production attain
a state of equilibrium
Change - (answers)The tendency of social and economic forces affecting supply
and demand to alter over time
Competition - (answers)Availability must be in harmony with demand. If one or
the other is in excess prices will increase or decrease
Conformity - (answers)The value of property depends in part in its relationship to
its surroundings
Consistent Use - (answers)States that a property must be valued with a single use
for the entire property
Contribution - (answers)The basis for applying the adjustments in the sales
comparison approach
Increasing/Decreasing Returns - (answers)After reaching a certain point the
addition of successive increments of one agent of production will decrease future
incomes or amenities
, 2
Progression/Regression - (answers)The value of a lower priced property is
increased by its association with better properties of the same type
Substitution - (answers)Market value of a property tends to be set by the cost of
acquiring an equally desirable and valuable property
Surplus Productivity - (answers)Net income remaining after the cost of labor,
management, & capital has been paid
Supply - (answers)The amount of goods that producers are willing to sell under
various conditions during a given period
Demand - (answers)Quantities of various goods that people are willing to and able
to buy during some period, given the choices available to them
Land - (answers)The surface of the earth and everything above it and beneath it
5 attributes of Land - (answers)Permanent
Unique
Finite supply
Functional
Stationary
, 3
4 Characteristics of Land - (answers)DUST
Natural state of the land before anything is done to it - (answers)raw land
Improvements to land - (answers)everything done to the land that increases its
usefulness without actually placing a structure or building is considered
Improvements on land - (answers)any structures or buildings placed on the land
are considered
Site - (answers)A parcel of land that has been developed to the extent that it is
ready to be build upon for its intended use
Bundle of Rights - (answers)SLUGER
Eminent Domain - (answers)The power of the gov to take land for public use
providing just compensation
Private restrictions - (answers)easements or right of ways
4 Agents of Production - (answers)Land
Labor
