IAAO 101 CHAPTER 1 REVIEW
QUESTIONS WITH CORRECT ANSWERS
Requirements of Assessor - CORRECT ANSWER -Discovery
Listing
Valuation
eminent domain - CORRECT ANSWER -Right to take property for public use provided
compensation
Principle of Substitution - CORRECT ANSWER -Market value of a property tends to be set by the
cost of acquiring an equally desirable and valuable property
Cost - CORRECT ANSWER -The sacrifice made to acquire property
Price - CORRECT ANSWER -The amount asked, offered, or paid for a property
Value - CORRECT ANSWER -The monetary worth of property to buyers and sellers
Demand - CORRECT ANSWER -Consumer
Supply - CORRECT ANSWER -Producer
Equilibrium - CORRECT ANSWER -the point at which the forces of supply and demand meet
Entrepreneur expectation - CORRECT ANSWER -If suppliers think the consumers will buy more
of a product then production will be increased
QUESTIONS WITH CORRECT ANSWERS
Requirements of Assessor - CORRECT ANSWER -Discovery
Listing
Valuation
eminent domain - CORRECT ANSWER -Right to take property for public use provided
compensation
Principle of Substitution - CORRECT ANSWER -Market value of a property tends to be set by the
cost of acquiring an equally desirable and valuable property
Cost - CORRECT ANSWER -The sacrifice made to acquire property
Price - CORRECT ANSWER -The amount asked, offered, or paid for a property
Value - CORRECT ANSWER -The monetary worth of property to buyers and sellers
Demand - CORRECT ANSWER -Consumer
Supply - CORRECT ANSWER -Producer
Equilibrium - CORRECT ANSWER -the point at which the forces of supply and demand meet
Entrepreneur expectation - CORRECT ANSWER -If suppliers think the consumers will buy more
of a product then production will be increased
