One standard method of determining just compensation is the comparable sales method. What is the comparable sales method, and why might some individuals perceive this method to be unfair?
What will be an ideal response?
The comparable sales method is a method of valuing land by determining what similar properties have sold for in the recent past. Some individuals might find this method to be unfair because the homes that have recently sold were most likely sold by people who wanted to move, and therefore may have valued their homes at less than what those who want to stay value their homes. Also, many homeowners have an emotional or sentimental attachment to their homes, and this is not accounted for by using a comparable sales method. Another reason that this method is perceived as unfair is that the fair market value standard does not compensate for any legal fees or relocation costs that may be incurred.
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In competitive markets, surpluses or shortages will
A. cause changes in the quantities demanded and supplied that tend to eliminate the excess production or excess demand. B. cause shifts in the demand and supply curves that tend to eliminate the excess production or excess demand. C. cause changes in the quantities demanded and supplied that tend to intensify the excess production or excess demand. D. never exist because the markets are always at equilibrium.
The welfare rolls today are
A. much higher than they were in 1994. B. A little higher than they were in 1994. C. a little lower than they were in 1994. D. much lower than they were in 1994.
Credit cards:
A. are financial assets. B. create money. C. create the need to hold highly liquid assets. D. reduce the value of holding money.
If a monopoly earns a loss in the short run and market conditions do not change, then it should exit the industry in the long run.
Answer the following statement true (T) or false (F)