Real estate agents and multiple listing services tend to make real estate markets:
(a) less perfect
(b) more imperfect
(c) more perfect
(d) does not influence the market one way or the other
A hypothesis is:
(a) not a step in a scientific method
(b) done before analyzing data
(c) a fancy word to formulate and test a tentative decision
(d) is not all that important
A change or shift in demand could be caused by a change in:
(a) the cost of the factors of production
(b) business anticipation of future trends
(c) consumer tastes
(d) an increase in the cost of labor
In terms of crop yields, the amount, timing, and nature of available moisture is every bit
as important as:
(a) market price of the produce
(b) proximity to market
(c) proximity to services
(d) quality of the soil
A general plan is:
(a) a formulation of public goals
(b) no longer required by law
(c) not a major concern for investors
(d) an exact forecast of future needs
During times of recession, the government can attempt to stimulate the economy by:
(a) increasing government spending
(b) increasing taxes
(c) increasing interest rates
(d) increasing budget cuts
One characteristic of home building is that it is difficult to attract people to start a home
construction company during boom times.
(a) true
(b) false
Changes in the demand for real estate can be caused by all of the following EXCEPT:
(a) vacancy changes
(b) population changes
(c) income changes
(d) personal lifestyle changes
Signs of neighborhood change include all of the following:
(a) use change, density of occupancy, transportation
(b) transportation, turnover, zoning, general plan
(c) general plan, density, transportation
(d) condition, turnover, use change, density of occupancy
In analyzing the possible alternative uses of an unimproved property, the physical
features of the property must be considered.
(a) true
(b) false
To help estimate future changes, it is helpful to understand the changes in the past:
(a) true
(b) false
In the short run, an increase in the supply of money should increase:
(a) the demand for real estate
(b) government spending
(c) interest rates
(d) unemployment
The cost of required government reports include:
(a) inflation costs
(b) review fees
(c) preparation costs
(d) all are costs associated with government reports
According to the theory of capitalism, goods and services will go to those who have
something of value to _________:
(a) develop
(b) implement
(c) exchange
(d) none of the above
In a typical real estate “buyer’s market:”
(a) demand exceeds supply
(b) prices are declining
(c) there are many qualified buyers but few properties are for sale
(d) mortgage interest rates are usually low
Physical forces for change include all but:
(a) soil creep
(b) flood
(c) pollution
(d) zoning
Some economists use the term “demand” to mean just desire or need:
(a) true
(b) false
In a pure capitalistic economy individuals own the factors of ___________:
(a) competition
(b) consumption
(c) production
(d) only wages
In the neighborhood rehabilitation cycle, when new occupants are attracted, different in
income levels and density of occupancy from the current occupants, this phase is called
the:
(a) recovery period
(b) declining period
(c) boundaries period
(d) destabilizing period
If the number of buyers for homes in a neighborhood is the same as the number of
sellers, then the market is ________.
(a) competitive
(b) an advantage for sellers
(c) an advantage for buyers
(d) at an equilibrium point
Changes in demand include:
(a) number of units constructed
(b) personal lifestyles
(c) demolitions
(d) zoning changes
Open-market operations:
(a) is not a Fed tool
(b) is not a money-management tool
(c) does not influence interest rates
(d) is a money-management tool
An appraisal analysis:
(a) is a step in analyzing the investment potential of an improved property
(b) is an absolute scientific process that does not require personal judgment
(c) is a process that always establishes finite value
(d) none of the above
When all major economic decisions are made by private individuals with no
interference by government, the economic system would be called:
(a) pure socialism
(b) mixed socialism
(c) mixed capitalism
(d) pure capitalism
For a professional real estate exemption from the passive loss rules, the qualified real
estate professional must spend at least ______ hours in real estate activities.
(a) 250
(b) 350
(c) 400
(d) 750
Many investor-owners rent out business properties on long-term leases because:
(a) it is a good idea
(b) it makes investor’s job easier
(c) the owner wants protection against vacancies and rent losses
(d) it is much easier to deal with government
Use changes are not related to zoning:
(a) true
(b) false
Supply represents the _________ side of the market.
(a) seller’s
(b) buyer and seller
(c) buyer’s
(d) none of the above
The main concerns for farmland use are:
(a) competition from other uses and community facilities
(b) which crops will grow at what cost and the estimated yield
(c) water supplies and permits
(d) improvements and access
Subdividing and off-site improvements are part of which phase of the home building
process?
(a) feasibility
(b) construction
(c) land development
(d) management
Steps in construction starts with:
(a) land procurement
(b) planning
(c) off-site assessment
(d) availability of labor assessment
Changes in consumer taste are:
(a) a supply consideration
(b) a demand consideration
(c) not a consideration in real estate economics
(d) none of the above
Economic feasibility is based, in part, on a forecast of future earnings.
(a) true
(b) false