______ is the sum of all of the topographical, transport, and other influences on land
use that characterize a particular neighborhood:
(a) Zoning
(b) Topography
(c) Land
(d) Location
During times of rapid inflation, the government can attempt to reduce inflation by:
(a) increasing government spending
(b) decreasing taxes
(c) decreasing interest rates
(d) decreasing the supply of money
John Maynard Keynes wrote:
(a) The Free Market Theory
(b) Marginal Pricing Theory
(c) Das Kapital
(d) Theory of Employment, Interest, and Money
Government actions that impact on the growth patterns of a city are called:
(a) social forces
(b) physical forces
(c) political forces
(d) economic forces
Rural homesites are good long-term investments, due to the steady growth of rural land
values.
(a) true
(b) false
In a changing community, all land use:
(a) will not likely change
(b) will stay profitable
(c) will eventually change
(d) none of the above
All things being equal, when apartments are converted to condos, the result would tend
be a decrease in rent levels, but an increase in condo and home prices.
(a) true
(b) false
When in equilibrium, a subsequent increase in demand and supply at the same time by
the same amount will:
(a) decrease price
(b) increase price
(c) increase quantity
(d) shift the demand and supply curves to the left
An owner’s initial cost basis is:
(a) never used on investment property
(b) a factor for determining the price of land
(c) need to calculate depreciation
(d) all of the above
Calculating gain and taxes owed on income property requires:
(a) calculating the adjusted cost basis
(b) developing an overall rate of return
(c) developing a net operating income
(d) none of the above
Real estate economics is a study of:
(a) national trends
(b) regional trends
(c) local trends
(d) all of the above
All things being equal, the lower that the subject property’s gross rent multiplier is,
relative to the average market multiplier, the better the buy.
(a) true
(b) false
In regards to land, in the absence of public or private controls:
(a) transportation would be marginalized
(b) grouping of uses would not occur
(c) highest and best use determination is not necessary
(d) land will go to the highest bidder
Economics is considered a:
(a) behavioral science
(b) physical science
(c) cultural science
(d) social science
Community economic studies can provide:
(a) opinion of value
(b) factual basis for improved judgment decisions
(c) marketability of a project on a specific site
(d) highest and best use determination
Laissez-faire means hands-on:
(a) true
(b) false
Real estate economics draws __________ form both general economics and real estate
practice:
(a) conclusions
(b) principles
(c) data
(d) findings
When a developer faces added bank payments on idle equipment because of
government delays, it is technically referred to as:
(a) an opportunity cost
(b) an overhead cost
(c) an inflation cost
(d) a social cost
In real estate markets, the typical buyer of residential property is not very
knowledgeable:
(a) true
(b) false
Public land use controls are projected to:
(a) become less important
(b) be eliminated
(c) expand in most markets
(d) address less environmental concerns
Economists may offer suggestions for change and may forecast trends:
(a) true
(b) false
All other things being equal, the higher the productivity of the soil, the lower the value
of the farm land.
(a) true
(b) false
The construction of sewer lines comes under the category of:
(a) noncommercial construction
(b) on-site construction
(c) pot holing
(d) public works construction
Social change can be considered a ________ for investors.
(a) minimal event
(b) risk
(c) non-event
(d) none of the above
Eminent domain:
(a) is a police power
(b) allows government to acquire private property
(c) does not require the payment of just compensation
(d) is a private land-use control
Linkage refers to:
(a) proximity to residential uses
(b) interrelationship between one business and others
(c) ease by which a store or business can be reached
(d) none of the above
Before-Tax Cash Flow plus/less Taxes Saved or Paid equals:
(a) net operating income
(b) net spendable income
(c) gross operating income
(d) none of the above
Businesses considering new locations today are influenced by all of the following
factors EXCEPT:
(a) availability of land
(b) availability of skilled labor
(c) availability of animals
(d) availability of raw materials
Money is:
(a) medium of exchange
(b) a store of value
(c) a standard of deferred payment
(d) all of the above
Personal income tax is:
(a) is proportional
(b) is neither regressive or progressive
(c) somewhat regressive
(d) somewhat progressive
Private land-use controls include:
(a) zoning
(b) building codes
(c) economic highest and best use and private deed restriction
(d) all of the above
The labor force participation rate is used in preparing a population forecast for a region,
by using a ratio of jobs to people:
(a) true
(b) false
The study of economics can be broken down into _____ main categories.
(a) four
(b) two
(c) three
(d) six
Examples of the government intervention in economic affairs include:
(a) zoning
(b) environmental constraints
(c) government spending
(d) all of the above
Location is:
(a) a non-economic factor
(b) a specific economic rule
(c) not a comparative advantage consideration
(d) a comparative advantage consideration