economics - valuation questions

  1. Give 5 real estate examples of the concept of "marginal utility"

  2. How is "consumer equilibrium" as it applies to marginal utility affected by an oversupply of office space in the CBD?

  3. "Some of the several assumptions applying to the theory of demand are more successfully met in the real estate market than many other markets".

  4. Briefly discuss those assumptions that generally, do not successfully apply to the real estate market.

  5. Give 5 real estate examples of "complementary commodities"

  6. How does the valuation "principle of anticipation" apply to residential cottages?

  7. List 5 demand determinants that can shift the demand curve for office accommodation. For each determinant, determine the direction of the shift.

  8. "Changing technology has been the most important single factor in affecting consumer demand for CBD office space".

  9. Discuss the above statement listing the 5 most important factors that have been affected by technology in the CBD area.

  10. "The real estate market although not a 'pure' market has sufficient checks and balances to emulate a 'pure' market". Discuss the above quotation describing those "checks and balances" which are evident and effective in the real estate market.

  11. Briefly discuss the difference between price and value from an economist's point of view

  12. How do the notions of short run and long run affect the real estate market?

  13. What was the economic rent of land when Australia was first settled? How has it changed with the growth of settlement?

  14. How would the law of diminishing returns apply to an intensive agricultural use such as a market garden? What are the typical variable inputs that can affect the size and intensity of a market garden?

  15. "Opportunity cost is one of the most important single concepts in the valuation of real estate by the 'direct comparison' and the 'summation' methods".

  16. Discuss the above quotation illustrating with 3 examples, the use of "opportunity cost" in valuation.

  17. "Fixed costs are only fixed in the short run". Is this true? How can time affect the notion of "fixed costs"?

  18. Comment on the highest and best use of a development site given the following information on the 3 possible land uses:

  19. Profit and risk factor: 12%

      Land value: 200 000
      Profit and risk factor: 20%
      Land value: 190 000
      Profit and risk factor: 13%
      Land value: 195 000