In Which of the Following Cases Is It Advisable for an Appraiser

question 70

Multiple Choice

In which of the following cases is it advisable for an appraiser use a graphic rating scale?

• A) If the appraiser is aware of the behavior required for the job and has the opportunity to observe that behavior.
• B) If valid output measures are available.
• C) If the appraiser is aware of the behavior required for the job and valid output measures are available.
• D) If the appraiser does not have the opportunity to observe behavior required for the job and no valid output measures are available.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, assuming all other inputs remain constant.

Implicit Costs

The opportunity costs that arise from using resources that a company already owns for production, instead of earning revenue from these resources elsewhere.

Explicit Costs

Explicit costs refer to direct payments made to others in the course of running a business, such as wages, rent, and materials.

Variable Cost

Costs that change in proportion to the level of output or production activity.