Land use is:
(a) fixed in the short run
(b) fixed in the long run
(c) is never fixed
(d) flexible
New construction occurs only when:
(a) the required resources are available
(b) only when there is vacant land
(c) only when there is demand
(d) when entrepreneurial skills are only present
Economics is a(n) _______ science.
(a) familiar
(b) exact
(c) precise
(d) inexact
What happens when supply decreases and demand increases at the same time:
(a) price decreases
(b) price increases
(c) equilibrium stays the same
(d) none of the above
People often say that there are three factors that determine the value of a property:
(a) location, location, and location
(b) money, money, and money
(c) improvements, improvements, and improvements
(d) people, people, and people
Investments are maximized when:
(a) the best location is identified
(b) the building with the least problems is selected
(c) the highest yield on equity investment is activated
(d) the lowest price is selected
The recurrent expansion and contraction in general business activity over time is called
___________.
(a) business cycle
(b) short-term activity
(c) seasonal fluctuation
(d) foreign investment
The U.S. “farm problem” is a classic example of:
(a) demand exceeding supply
(b) supply exceeding demand
(c) lack of productivity
(d) all of the above
Credit cards are not:
(a) money
(b) loan
(c) line of credit
(d) used to acquire goods
In the short-run, the supply of housing is fixed. In a boom year, the most that new
construction adds to the nation’s housing supply is about 20%.
(a) true
(b) false
From an economic view, existing improvements are demolished when:
(a) the existing use is profitable
(b) demolition costs is high
(c) new use is profitable enough to pay for the site, the old building, the demolition
cost, and the cost of the new building
(d) none of the above
For long-term investors, as opposed to short-term speculators, the best regions have an
economic base that is:
(a) dependent upon secondary service jobs
(b) diversified
(c) specialized in a single high tech industry
(d) currently in transition from one industry to another
Farm soils are generally placed in one of:
(a) eight major categories
(b) ten major categories
(c) fifteen limited categories
(d) six subcategories
The ease by which a customer or suppliers can reach a commercial or industrial
property is called:
(a) linkage
(b) easement
(c) location factor
(d) accessibility
The production of urban real estate can be broken down into two major categories:
(a) land development and construction
(b) construction and utilities
(c) site analysis and utilities
(d) externalities and construction
For local governments, the major source of tax revenue is:
(a) property tax
(b) fines
(c) levies
(d) auto license tax
Major growth in community population must be followed by growth in the number of
housing units.
(a) true
(b) false
The California Subdivision Map Act is implemented at what level:
(a) federal
(b) local
(c) state
(d) region
Net Operating Income divided by Market Capitalization Rate equals
(a) estimated market price
(b) marginal rate
(c) tax savings
(d) minimum price
Real GDP is GDP that has been adjusted for:
(a) taxes
(b) government expenditures
(c) inflation
(d) unemployment
The money supply includes:
(a) M4
(b) M1
(c) MI6
(d) none of the above
When a small group of buyers or sellers is able to influence the price of a good or
service, then the market is said to be _________.
(a) zoned
(b) environmental
(c) imperfect
(d) domestic
The rule of comparative advantage comes into action when a number of potential users
seek the same site:
(a) true
(b) false
A neighborhood cycle includes:
(a) there is no neighborhood cycle
(b) growing, stagnant, declining, and possible recovery
(c) trend development projection
(d) none of the above
Based on the income level of the person paying the tax, which tax is considered
progressive?
(a) sales tax
(b) income tax
(c) property tax
(d) lottery ticket
A population forecast for a region can be estimated using a technique that applies the
labor participation rate.
(a) true
(b) false
Property taxes provide a stable source of income to the federal government.
(a) true
(b) false
That legal use of land that produces the most net income, the highest value, is called:
(a) highest and best use
(b) principle of conformity
(c) present use of discounted profit
(d) economics of distribution
The breakdown of the composition of a population according to age, sex, occupation,
and income level is called:
(a) trend
(b) statistics
(c) demography
(d) trend analysis
Private land-use controls are often called:
(a) zoning
(b) police power
(c) deed restrictions
(d) conditional Use Permit