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LEM621S - LAND ECONOMICS - 2ND OPP - JAN 2020 |
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NAMIBIA UNIVERSITY
OF SCIENCE AND TECHNOLOGY
FACULTY OF NATURAL RESOURCES AND SPATIAL SCIENCES
DEPARTMENT OF LAND AND PROPERTY SCIENCES
QUALIFICATION(S): BACHELOR OF PROPERTY STUDIES
DIPLOMA IN PROPERTY STUDIES
QUALIFICATION(S) CODE: OO8GBDPPRRSS
NQF LEVEL: . 6
COURSE CODE: LEM621S
EXAMS SESSION: JANUARY 2020
DURATION:
3 HOURS
COURSE NAME: LAND ECONOMICS
PAPER:
THEORY
MARKS:
100
SECOND OPPORTUNITY/SUPPLEMENTARY EXAMINATION QUESTION PAPER
EXAMINER(S) | UAURIKA KAHIREKE
MODERATOR: | SAMUEL ATO K. HAYFORD
INSTRUCTIONS
Read the entire question paper before answering the Questions.
Please write clearly and legibly!
The question paper contains a total of4 questions.
You must answer ALL QUESTIONS .
Make sure your Student Number is on the EXAMINATION BOOK(S).
PERMISSIBLE MATERIALS
1. Non-programmable Scientific Calculator
THIS QUESTION PAPER CONSISTS OF 4 PAGES (Including this front page and attached Appendix A)
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* Land Economics
LEM621S
Question 1
a) Discuss the following significance of land as used in land economics.
i) Aconsumption good;
(4)
ii) Situation; and
(4)
iii) Property
(4)
b) Specify the six (6) qualities of an ideal investment and indicate the extent to which property
investment meets or doesn’t meet these qualities.
(13)
[25]
Question 2
a) Property tax revenue to support local authorities in developing countries is not fully tapped
to their highest potential. Discuss any five (5) of the challenges thereof.
(25)
b) — Explain the three (3) main modern canons of taxation
(5)
[30]
Question 3
a) Attached as appendix A is a graph illustrating the effect of transportation cost on land rent
producing capacity associated with the use of land at various locations from Otjo, the market.
With the information provided answer questions i) to vi) below. (All figures are in NS per ton
of products).
i) At which location (town) does (‘No rent margin’) occur AND why?
(2)
ii) Between which two towns signify profit making locations?
(1)
Second Opportunity Examination
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January 2020
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Land Economics
iii) How much is earned for land rent per ton for the use of land in Otavi?
LEM621S
(1)
iv) If operators of Otavi land are to enjoy any land rent, what is expected of them and by what
amount (in your opinion) will lead to that.
(3)
v) Estimate the amount of land rent per ton associated with the use of Okapuka and Otjinene
lands located at a distance of 15km and 25km respectively from the market.
(4)
vi) What is the amount of land rent associated with the ‘optimal location’
(1)
vii) At the ‘No rent margin’ what is the total cost of transportation per ton?
(1%)
viii) At the ‘No rent margin’ what is the total cost of production per ton including transport to
the market?
(1%)
[15]
Question 4
a) Briefly account for any four (4) principles usually applied in evaluating land/property tax
system.
(6)
b) The main Valuation Roll as provided under the Agricultural (Commercial) Land Reform Act of
1995, is not immune from errors; who may change the contents of the main valuation roll
and state the purposes for which the main valuation roll may be changed?
(5)
c) A proper valuation activity for property tax administration requires that several
preconditions are in place. Outline any of these preconditions?
(5)
d) One of the advantages of a Municipal Property Tax is a low compliance Costs. Outline what
it involves and how this advantage benefits a taxpayer.
(4)
e) Mention the significance of Variable tax rate and briefly explain the grounds on which its
application may be justified
(10)
[30]
Second Opportunity Examination
All the best of luck.
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