The Best Definition of Fair Market Value Is the

question 26

Multiple Choice

The best definition of fair market value is the

• A) value as determined by a fee appraisal.
• B) highest price a seller can get for his property.
• C) tax assessed value.
• D) price a willing buyer will pay and a willing seller will accept, given a reasonable amount of time to effect the sale.

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Definitions:

Nonmarket Participants

Individuals or entities that engage in economic activities outside the formal market, often not reflected in formal economic statistics or analyses.

Externality

An outcome from economic action that affects people who are not directly involved, and this impact can be beneficial or harmful.

Economically Efficient

A state where resources are allocated in a way that maximizes the production of goods and services, with no way to improve someone's condition without worsening another's.

Coase Theorem

A principle stating that if property rights are well-defined and transaction costs are low, parties will negotiate to correct externalities without government intervention.