Question 1

While most real property in the United States is privately owned,government regulations limit private property use and therefore play an important role in the determination of property value.Proponents of government intervention argue that regulation is needed to address the unintended and unaccounted for consequences of one land user upon others,more commonly referred to as:

Accepted Answer

A) incomplete information 
B) locational monopoly 
C) externalities 
D) urban sprawl

Question 2

Tax rates are usually stated in mills.Assuming the tax rate in percentage terms is 6.5%,convert this rate to mills.

Accepted Answer

A) 0.065 mills 
B) 6.5 mills 
C) 65 mills 
D) 650 mills

Question 3

Negative externalities can diminish a property's value by imposing costs on the community at large.In order to offset this detrimental impact,economists advocate "internalizing" these externalities by implementing:

Accepted Answer

A) performance standards 
B) impact fees 
C) growth moratoriums 
D) planned unit developments

Question 4

The right to pay unpaid taxes,plus interest and penalties,before public sale and to reclaim full title of the property is referred to as:

Accepted Answer

A) inverse condemnation 
B) foreclosure 
C) equity right of redemption 
D) regulatory taking

Question 5

When land use controls impose exceptional hardship and loss of value,a relief mechanism must be provided.This relief is referred to as a:

Accepted Answer

A) building code 
B) zoning ordinance 
C) comprehensive plan 
D) variance

Question 6

The right of government to acquire private property,without the owner's consent,for public use in exchange for just compensation is referred to as:

Accepted Answer

A) inverse condemnation 
B) regulatory taking 
C) eminent domain 
D) dedication

Question 7

After a structure is built,it is impractical for even a building expert to fully assess the quality of the construction and the safety hazards it may harbor.This is an example of which of the following problems that plagues private real estate markets?

Accepted Answer

A) Externalities 
B) Incomplete information 
C) Locational monopoly 
D) Holdout

Exam 4: Government Controls and Real Estate Markets