When a single parcel of land is allowed an exception to or deviation from a zoning
requirement, the exception is called a:
(a) rezone
(b) variance
(c) lot split
(d) restriction
A market in which there is only one seller is called:
(a) monopoly
(b) oligopoly
(c) monopsony
(d) none of the above
Understanding past changes in the economic base of an area will not help predict future
changes.
(a) true
(b) false
If an investor in a limited partnership has a taxable income or taxable loss for the year, a
set of rules called the passive income and loss rules apply.
(a) true
(b) false
Which of the following is the least powerful local government planning tool for
implementing a community general plan?
(a) subdivision regs
(b) eminent domain
(c) property taxation
(d) zoning
Immigrants and foreigners who live in the United States:
(a) increase the demand for housing
(b) decrease real estate commission rates
(c) decrease the supply of housing
(d) increase the vacancy rates for apartments
A store of value refers to:
(a) credit card
(b) money
(c) local bank
(d) community shopping center
The government’s use of the money supply and interest rates as a tool to control swings
in the business cycle is called:
(a) automatic stabilizers
(b) fiscal policy
(c) monetary policy
(d) foreign policy
The two main techniques used to conduct a regional economic study are:
(a) investment analysis study and input-output study
(b) economic base study and highest and best use study
(c) marketability study and economic base study
(d) economic base study and input-output study
Net Operating income divided by Price equals
(a) marginal rate
(b) cash on cash
(c) capitalization rate
(d) gross rent multiplier
In a perfect market:
(a) there is a need for a third party real estate agent
(b) buyers are knowledgeable
(c) sellers need not be knowledgeable
(d) appraisers are always needed
The “what if” question:
(a) is important because it looks at risk
(b) is not important
(c) does not identify issues
(d) does not adequately identify issues that could be ignored
As the money supply expands:
(a) credit is harder to get
(b) interest rates tend to drop
(c) less products are purchased
(d) disintegration occurs
Economics is a:
(a) physical science
(b) profit
(c) social science
(d) life science
A region is referred to as:
(a) a single medium city
(b) group of communities
(c) an efficient city
(d) none of the above
Private costs
(a) includes out-of-pocket money expenditures
(b) is not used by economists in their analysis
(c) does not include business costs
(d) includes social costs
Gross Scheduled Income is the first line item in a cash flow analysis.
(a) true
(b) false
When considering locations, business generally seek:
(a) least expensive access to needed inputs and outputs
(b) cost is never a consideration
(c) only the best community attitudes
(d) none of the above
Non-economic community factors include:
(a) political forces
(b) social forces
(c) legal forces
(d) all of the above
Subdivision laws regulate:
(a) division of land into legal parcels
(b) building heights
(c) zoning
(d) building codes
Which property owner is least able to shift a property tax increase to others?
(a) store owner
(b) home owner
(c) apartment owner
(d) office owner
Impact fees paid by a developer are similar to a tax based on what philosophy?
(a) ability to pay
(b) benefits received
(c) proportional
(d) fair share
All of the following are principles of pure socialism, EXCEPT:
(a) a central planning committee
(b) distribution is based on need
(c) public ownership of basic resources
(d) open and competitive markets for goods and services
Jane Jacobs wrote:
(a) The City as a Center
(b) The Economy of Cities
(c) Rush City Revised
(d) Site Planning
All depository institutions are required to:
(a) avoid keeping reserves
(b) keep a certain percentage of each deposit as reserves
(c) keep only 10% of their reserves
(d) none of the above
Federal funds rate is:
(a) is technically listed as a major tool of the Fed
(b) not technically listed as a major tool of the Fed
(c) is the prime rate
(d) is not related to borrowing excess reserves
A mandated general plan:
(a) helps the real estate professional make decisions
(b) is easily changed and therefore is of no consequence
(c) is hardly used by real estate professionals
(d) does not assist in determining the highest and best
Changing circumstance may change demand, causing a(n) __________________ in the
number of available buyers.
(a) increase
(b) decrease
(c) willingness
(d) increase or decrease
Major income tax advantages for owning income producing real estate include:
(a) repairs are deductible
(b) interest is deductible
(c) 1031 exchange
(d) all of the above
That point where supply and demand are matched at a price that will clear the market is
called:
(a) open price
(b) equilibrium
(c) comparative advantage
(d) surplus