The statement "in the cost approach to valuation, land value can be estimated by comparing sales of vacant land that are similar to the subject land" is true.
<h3>What is valuation?</h3>
Valuation is an estimation of the price of a good or a product. When a product is manufactured, its evaluation is estimated. It is estimated by seeing the manufacturing price, labor cost, and raw material cost.
Here, the valuation of vacant land and subject land is estimated, which is similar by seeing the comparison. So the statement will be correct about the comparison.
Thus, the statement is true.
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The question is incomplete. Your most probably complete question is given below:
State whether true or false.
Answer:
The correct answer is A and B
Explanation:
Law of increasing the opportunity cost is the principle or the concept which is defined as the company continue to increase the production of one good, the opportunity cost of producing the next unit will increase.
It is as to reallocate the resources in order to produce that one good which was better or best suited to produce the original good.
The law of opportunity cost occur when some of the resources are best suited for some tasks or products instead of others and it will lead to increase in production with increase in the opportunity cost too.
Answer:
The correct answer is: market efficiency; government intervention; specialization; equilibrium.
Explanation:
The owner of the snow cones realizes that the demand for snow cones has decreased in winter, and thus, closes shop to open back. This is an example of market efficiency.
The local river is being polluted too much because of the amount of chemicals being dumped in the river. The government puts regulation on the amount of chemicals being dumped. This is an example of government intervention in the economy.
At a restaurant one chef is placed at the vegetable station, one chef is at meat station, and one is to plate the food. This an example of specialization the management is placing chef that specializes in vegetable, meat and in plating at their respective positions.
The favorable whether leads to increase in supply of oranges. This causes a rightward shift in supply curve. The price of oranges fall as a result. This is an example of change in equilibrium.
Answer:
A). to track monthly changes in prices paid by urban consumers.
Explanation:
CPI(Consumer Price Index) is characterized as 'a statistical estimate of the price level of goods and services bought by consumers for consumption purposes by the households.' It primarily aims to estimate the change or swap in the prices of the weighted average price of the common basket(consumption goods, as well as, services that the consumers pay for). It is calculated using the formula;
where,
= current Consumer Price Index
= Current price basket
= Cost of price basket in the base year
It assists in deducing whether the average prices have received a fall or rise and determines inflation or deflation. Thus, <u>option A</u> is the correct answer.
