Question 1

1pts

Bob Bungler, owner of Bungler Appraisals, has received an assignment to appraise a property located in a small town that has one large employer, theWile E. Coyote Advertising Agency, Inc.Wile E. Coyote employs a very large number of local residents. Bob just read in the paper that the advertising firm is planning to move their offices and video productions to a distant larger metropolitan area over 500 miles away resulting in significant local layoffs which will have a serious impact on the local economy based on this valuation principle.

Group of answer choices

Principle of Supply and Demand

Principle of Substitution

Principle of Anticipation

Principle of Competition

Question 2

1pts

Frightened Freddie added a giant underground bunker for the upcoming Nicolas Cage uprising, nuclear meltdown or the return of the shape-shifters. It cost him over $100,000 to build, but only added $5,000 additional value to his house based on this valuation principle.

Group of answer choices

Principle of Contribution

Principle of Conformity

Principle of Decreasing Returns

Principle of Economy of Scale

Question 3

1pts

Yvonne Yuppie is a millennial who desires a contemporary home with a modern state-of-the-art kitchen with flush panel cabinetry, quartz countertops and a 48 inch commercial stainless steel Viking range. Homes with strikingly contemporary kitchens are scarcer than those traditional kitchens resulting in a higher price premium for homes with ultramodern kitchens based on this valuation principle.

Group of answer choices

Principle of Competition

Principle of Supply and Demand

Principle of Highest and Best Use

Principle of Consistent Use

Question 4

1pts

Appraiser April Raisaladvises her client in Carlsgood, California that adding a 2,000 SF addition to a 1,500 SF house in a neigborhood of 1,800 SF houses will be an over-improvement for the neighborhood and will not produce any return based on this valuation principle.

Group of answer choices

Principle of Economy of Scale

Opportunity Cost

Principle of Balance

Principle of Decreasing Returns

Question 5

1pts

Johnny B. Goode narrows down his selection of homes to two houses located on the same street in the same tract of Lemon Park Acres with a $20,000 price differential. Both houses are the same gross living area, have the same bedroom count and are of similar design and appeal. Johnny selects the home thatis $20,000 less.

Group of answer choices

Principle of Substitution

Principle of Supply and Demand

Principle of Anticipation

Principle of Contribution

Question 6

1pts

PlantlessPortland despises garden maintenance. He decides to pour green stained concrete in his front yard instead of enhancing its curb appeal with well designed plant material. The green concrete will definitely stand out like a sore thumb in his neighborhood and diminish his home's value in a neighborhoodof well-manicured landscaped front yards based on this valuation principle.

Group of answer choices

Principle of Consistent Use

Principle of Conformity

Principle of Change

Principle of Regression

Question 7

1pts

Prestigious developer Dewgood & Be Fayre purchases a high rise condo building in the city of Walrus Beach and converts it to a legally permissible, physically possible, financially feasible and maximally productive mixed-use condo/retail building based on this valuation principle.

Group of answer choices

Opportunity Cost

Principle of Change

Principle of Highest and Best Use

Principle of Supply and Demand

Question 8

1pts

Frugal Frieda understands that money does not buy happiness. You can just tell by looking at her modest, 1,400 SF home in Beverly Hills surrounded by expensive and expansive celebrity mansions. She is content knowing that her house will increase in value based upon this valuation principle.

Group of answer choices

Principle of Land Value

Principle of Supply and Demand

Principle of Consistent Use

Principle of Progression

Question 9

1pts

Green Delights Construction Company explains to their client that it is more cost-effective to build a 2,300 SF house now rather than build a smaller 1,800 SF house and add a 500 SF addition later based on this valuation principle.

Group of answer choices

Principle of Increasing Returns

Principle of Substituion

Principle of Economy of Scale

Principle of Highest and Best Use

Question 10

1pts

Smarty Marty understands that "Knowledge is Power" andthat to be most successful in real estate today he must learn to "think like an appraiser." So he enrolls in the very best college appraisal class in all of Tangerine County. He knows that time spent studying may result in somewhat less social interaction with his friends for the time being. But he understands that putting his career first right now will reap future benefits and rewards based on this valuation principle.

Group of answer choices

Opportunity Cost

Principle of Anticipation

Principle of Increasing Returns

Principle of Nose to the Grindstone