While most real property in the United States is privately owned, government regulations limit private property use and therefore play an important role in the determination of property value. Proponents of government intervention argue that regulation is needed to address the unintended and unaccounted for consequences of one land user upon others, more commonly referred to as:

Question

Quizplus · Accepted Answer

The term "externalities" refers to the unintended and unaccounted for consequences of one land user upon others and is the most appropriate choice in this context. Incomplete information relates to situations where market participants have inadequate or asymmetric information about a property, which is not relevant to the issue presented. Locational monopoly refers to situations where the location of a property provides a competitive advantage to an individual or firm and is also not relevant. Urban sprawl could be considered an unintended consequence of private property use, but it is not directly related to government regulation. Therefore, C is the best choice.

While Most Real Property in the United States Is Privately