Markets can be broken down into two broad categories which are:
(a) perfect competition and imperfect competition
(b) land and improvements
(c) real property and appurtenances
(d) none of the above
Macroeconomics is the study of:
(a) individual units
(b) business firms
(c) change
(d) national economy
Seasonal fluctuations can be described as:
(a) occur within the year
(b) long-term
(c) occur over four years
(d) secular trends
Imperfect markets arise when:
(a) a large group of sellers compete in the market
(b) prices are set by the free flow of supply and demand
(c) goods and services are standardized
(d) small group of buyers or sellers is able to influence the price and output of a good
and service
Changes in taxation and education are examples of which type of force for
neighborhood change:
(a) political
(b) economic
(c) social
(d) economic
A summary of the net value of the goods exported and imported between one nation and
other nations is called:
(a) free trade
(b) rate of exchange
(c) balance of trade
(d) balance of payments
Changes in real estate demand are caused by:
(a) new construction
(b) demolitions
(c) changes in population
(d) none of the above
From a developer’s point of view, an environmental impact report is less expensive than
a negative declaration report.
(a) true
(b) false
The theory of city patterns that states, among other things, that higher price homes tend
to be built in the hills and lower priced homes on the flat lands is called:
(a) sector
(b) wedge
(c) axial
(d) concentric
In economics, the saying “There is no free lunch” refers to the fact that every choice we
make has a(n)
(a) opportunity
(b) limit
(c) cost
(d) reason
Public works construction normally fluctuates as much as residential construction.
(a) true
(b) false
If consumers favor smaller cars over large SUVs, demand for SUVs will ______.
(a) increase
(b) decrease
(c) increase or decrease
(d) remain the same
To increase the prevailing market interest rates, The Fed can:
(a) buy government notes
(b) raise the discount rate
(c) decrease reserve requirements
(d) decrease the federal funds rate
A change in demand for a particular architectural style of home is mainly caused by a
change in which demand variable?
(a) taste
(b) demography
(c) mortgage credit
(d) income
Business location factors include:
(a) site costs
(b) taxes
(c) transportation
(d) all of the above
The four major forces that have an impact on commercial real estate are:
(a) local community, comparative advantage, customer convenience and type of
business
(b) location, location, location, location
(c) comparative advantage, location, regional influence, and type of business
(d) type of business, location, consumer convenience, and community attitude
The Fed was established by Congress in:
(a) 1929
(b) 1913
(c) 1930
(d) 1908
Other income refers to items other than rent, such as storage or laundry revenue.
(a) true
(b) false
The reality is that fiscal and monetary tools face practical problems, due to structural
difficulties and:
(a) uniform applications
(b) political difficulties
(c) computer difficulties
(d) contractual applications
A material-oriented industry would tend to locate its plant near:
(a) raw materials
(b) market outlets
(c) labor supply
(d) customers
A deviation from zoning requirement is called a:
(a) condition
(b) lulu
(c) variance
(d) lot split
Which category of buyer income is uniquely important to activity in the recreational
housing market, as opposed to the standard owner-occupied housing market?
(a) national income
(b) personal income
(c) disposable income
(d) discretionary income
In real estate, a “buyer’s market” usually occurs when:
(a) demand exceeds supply
(b) interest rates are low
(c) numerous properties are for sale
(d) there are plenty of qualified buyers
Inputs include:
(a) land
(b) labor
(c) capital
(d) all of the above
Comparative advantage is:
(a) is not a transportation issue
(b) is not a positive government control
(c) the lack of natural features
(d) a major force on commercial real estate
Extensive marketing of remote rural subdivisions is required:
(a) because of limited preexisting demand
(b) to cater to existing demand
(c) to slow down the sales process to match the rate of subdivision development
(d) none of the above
Installment sale reporting:
(a) is always a good idea
(b) can assist with repairs
(c) can spread out the tax owed on a sale
(d) is always used with IRS 1031 exchange
In analyzing an unimproved property, the step after financial analysis includes:
(a) prepare development plan
(b) select best financing package
(c) market potential study
(d) appraisal analysis
As farm operations have become larger and more specialized:
(a) labor relations become easier
(b) the trend is for smaller farms
(c) seasonal workers are less important
(d) many farmers have turned to mechanization
The phrase “No Free Lunch” is best explained by the concept of:
(a) diminishing returns
(b) opportunity costs
(c) highest and best use
(d) excess demand
The famous capitalist, Adam Smith, wrote the book:
(a) Das Kapital
(b) The Wealth of Nations
(c) General Theory of Employment, Interest, and Money
(d) Theory of Capitalism
The highest and best use is that legal use that will produce the _____ capitalized net
income return to the land.
(a) lowest
(b) lower half of
(c) upper half of
(d) highest
Monetary policy can be used to:
(a) counteract recession
(b) counteract inflation
(c) counteract unemployment
(d) all of the above