New

Long-Term Learning

Learn efficiently and remember over time.

Start Long-Term Learning

Get personalized study reminders at intervals optimized for better retention.
Track your progress on this set by creating a folder
Or add to an existing folder

Add this set to a folder

  • 4 Factors that affect Value

    1) Utility
    2) Scarcity
    3) Desire
    4) Effective purchasing power

    Utility and Scarcity

    These are supply factors

    Desire and effective purchasing power

    These are demand factors

    Utility

    The ability of a product to satisfy a human want, need, or desire

    Scarcity

    The present or anticipated under supply of an item relative to the demand for it. Conditions of scarcity contribute to value

    Desire

    A purchaser's wish for an item to satisfy human needs or individual wants beyond essential life-support needs

    Effective Purchasing Power

    The ability of an individual or group to participate in a market, to acquire goods and services with cash or its equivalent

    4 Agents of production

    1) Labor
    2) Capital
    3) Coordination
    4) Land

    Marshall

    First major economist to consider the techniques of valuation, specifically the valuation of real estate

    Price

    The amount a particular purchaser agrees to pay and a particular seller agrees to accept under the circumstances surrounding their transaction

    Cost

    Used by appraisers in relation to production, not exchange. Cost may be either an accomplished fact or a current estimate

    Value

    For appraisers, the term value alone can be misleading. Appraisers typically refer to a particular type of value rather than the word on its own

    Market Value

    The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress

    Fair value

    The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date

    Highest and Best use

    Can be either

    -In Use

    or

    -In Exchange

    Use Value

    The value a specific property has for a specific use

    Investment Value

    The value of a specific property to a particular investor or class of investors based on individual investment requirements; distinguished from market value, which is impersonal and detached

    Going-Concern Value

    All tangible and intangible assets of an established and operating business with an indefinite life

    Public Interest Value

    A general term covering a family of value concepts that relate the highest and best use of property to non-economic uses

    Assessed Value

    The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value

    Insurable Value

    The value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting costs of non-insurable items from market value

    Desire and effective purchasing power

    ...

    Please allow access to your computer’s microphone to use Voice Recording.

    Having trouble? Click here for help.

    We can’t access your microphone!

    Click the icon above to update your browser permissions above and try again

    Example:

    Reload the page to try again!

    Reload

    Press Cmd-0 to reset your zoom

    Press Ctrl-0 to reset your zoom

    It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

    Please upgrade Flash or install Chrome
    to use Voice Recording.

    For more help, see our troubleshooting page.

    Your microphone is muted

    For help fixing this issue, see this FAQ.

    Star this term

    You can study starred terms together

    NEW! Voice Recording

    This is a Plus feature