Higher property taxes can cause:
(a) increases value of existing improvements
(b) solves environmental problems
(c) more efficient use of land
(d) more intensive land uses
The traditional role of the real estate agent as the source of information is changing due
to ____________.
(a) fair market prices
(b) the Internet
(c) clearly identify property lines
(d) market information in newspapers
In terms of community land use patterns, topography does the following:
(a) has no impact on the simple circles of accessibility
(b) modifies the simple circles of accessibility
(c) never dictates the location of transportation
(d) all of the above
Real property includes land, improvements and the ______ associated with ownership.
(a) rights
(b) problems
(c) laws
(d) latches
A decrease of demand may:
(a) increase foreclosures
(b) decrease foreclosures
(c) vacancies will increase
(d) two of the above
Resale price, less outstanding loan balances, less seller closing costs, less capital gain
taxes equals:
(a) net spend able income
(b) net rate of return
(c) net sale proceeds
(d) net operating income
The rate of conversions is a demand factor:
(a) true
(b) false
Real estate economics is not important on a day-to-day basis:
(a) true
(b) false
A key concept in economics is choice and ____________ cost.
(a) opportunity
(b) limited
(c) restrictive
(d) reasonable
The scientific method:
(a) is a formal procedure
(b) requires the problem to be defined
(c) includes some form of testing a hypothesis
(d) all of the above
The steps in analyzing an improved property usually include an appraisal, to analyze its
market value.
(a) true
(b) false
New construction may:
(a) decrease vacancies
(b) increase vacancies
(c) increase rents
(d) none of the above
When one views the economy as a circular flow, private individuals and households:
(a) provide land, labor, and capital
(b) pay wages, rents, and interest
(c) receive business revenue
(d) provide a vast array of consumer products
There are two alternative philosophies regarding taxation
(a) ability to pay and benefits received
(b) gross income and value added
(c) value added and net income
(d) none of the above
Location, in part, is the sum of all of the topographical influences in an area.
(a) true
(b) false
Internal Rate of Return is:
(a) one of two types of calculations of multiyear rates of return
(b) used by some investors
(c) recognizes the time value of money
(d) all of the above
Inclusionary zoning typically does not involve increased densities.
(a) true
(b) false
Using the income level of the person paying the tax as the measure, the substitution of a
sales tax for a property tax would be replacing a regressive tax with a tax.
(a) regressive
(b) progressive
(c) proportional
(d) ability to pay
The payment for the use of all of the factors of production is called:
(a) profit
(b) income
(c) interest
(d) return
Total Gross Income less vacancy and credit loss equals:
(a) Net Operating Income
(b) Gross Operating Income
(c) Before-Tax Cash Flow
(d) none of the above
The legal use that develops the highest value for the land is known as:
(a) feasibility study
(b) marketability study
(c) a reasonable investment
(d) highest and best use
To qualify for the $25,000 exception to the passive loss rules an investor:
(a) does not have to be active in the management of the rental property
(b) must own 10 percent or more direct interest in rental real estate
(c) must own at least 5 percent or more direct interest in rental real estate
(d) none of the above
Economic factors include all of the following except:
(a) age of household
(b) income level
(c) transportation influences
(d) location to jobs
Green building is best described as
(a) sustainable construction
(b) property management
(c) low cost construction
(d) builder profit
Private deed restrictions can:
(a) influence a neighborhood pattern
(b) not dictate neighborhood home styles
(c) increase traffic lights
(d) be considered a government regulation
Opportunity cost is referred to as:
(a) realized earnings
(b) unrealized potential earnings
(c) net income
(d) gross income less net income
The real estate market (cycle) in the short run may travel:
(a) travel somewhat similar to the general business cycle
(b) has no relation to the business cycle
(c) travel somewhat opposite to the general business cycle
(d) travel parallel to the business cycle
A decrease in demand causes:
(a) rents to increase
(b) encourage construction
(c) decrease in vacancies
(d) increase in vacancies
The greatest percentage of the U.S. money supply is represented by:
(a) checks
(b) coins
(c) paper currency
(d) certificates of deposit
Monetary and fiscal policy is the government’s way of controlling _______.
(a) real estate
(b) only spending power
(c) only taxing power
(d) the economy
The total market value of all goods and services produced within the U.S. economy in a
given time period is called:
(a) gross domestic product
(b) personal consumption expenditures
(c) net export
(d) gross private domestic investment
A change in demand for one product can cause a change in the supply of another
product:
(a) true
(b) false
The trend for public land use controls seems to be:
(a) on the decline
(b) neutral
(c) not an issue
(d) increasing