Question

Riparian water rights would improve the efficiency of water allocations in Colorado True False Annual land...

Riparian water rights would improve the efficiency of water allocations in Colorado

True

False

Annual land rent can be used to calculate real estate market prices.

True

False

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Homework Answers

Answer #1

1> False

The Riparian water rights say that the river water can be used by someone who lives just next to the river. This is fine in area where river flow is plentiful but Colorado is an arid state. So, this will lead to a drastic fall in the flow of the river because of the problem of tragedy of the common. Thus, Riparian water system is not suitable or efficient for water allocation in Colorado.

2> True

Rent is often proportional to the price of the real estate. This means a property with a higher price tag will fetch higher rent. Thus, rent can be a good proxy for real estate market prices.

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