Which of the Following Is Not a General Rule for Calculating

question 131

Multiple Choice

Which of the following is not a general rule for calculating the property factor?

• A)Uses the average property values for the year.
• B)Values property at historical cost.
• C)Excludes property in transit from the calculation.
• D)Includes rented property at eight times the annual rent.

---

Definitions:

Normal Good

A type of good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.

Demand Function

A mathematical formula that describes the relationship between the quantity of a good or service demanded and its price, along with other factors like income and the prices of related goods.

Substitution Effect

The effect observed when consumers replace more expensive items with cheaper alternatives due to changes in relative price levels, affecting demand for goods.

Utility Function

Describes how different combinations of goods or services (or different outcomes) provide levels of satisfaction or utility to an individual.