Availability of mortgage credit is a demand factor:
(a) true
(b) false
Ultimately, all taxes paid by:
(a) corporations
(b) people
(c) businesses
(d) government
Common patterns of return include:
(a) a series of payments over a period of time
(b) a series of payments plus a large single end payment
(c) a large single payment
(d) all of the above
The Internal Rate of Return does not consider the time cost of money.
(a) true
(b) false
Principle of comparative advantage:
(a) is not an international trade concept
(b) will not produce the lowest comparative cost
(c) does not create efficiencies
(d) may produce the lowest comparative cost
Liquidity refers to:
(a) 1031 exchange
(b) ease and speed of converting the investment into cash
(c) how easy it is to invest in real property
(d) a minimum of six months to convert an investment into cash
The demand for resource land is
(a) usually connected to the needs of the local economy
(b) usually not connected to the needs of local economy
(c) not impacted by transportation costs
(d) none of the above
A major influence for housing demand is:
(a) income
(b) units demolished
(c) units constructed
(d) none of the above
The Burgess pattern of land use does not concern itself with:
(a) commercial property
(b) higher-priced homes
(c) public facilities
(d) warehouses
The benefit gained by required government reports on real estate projects include:
(a) better land planning
(b) consumer protection
(c) less environmental damage
(d) all are benefits
An increase or decrease in per capita income is a __________ consideration.
(a) credit
(b) supply
(c) demand
(d) none of the above
Government regulation is rooted in:
(a) political ideologies
(b) investment preferences
(c) economic ideologies
(d) two of the above
If the local supply of real estate is fixed, in the short run, changes in current market
prices and rents will be determined by local changes in demand.
(a) true
(b) false
Land use patterns can be completely predictable.
(a) true
(b) false
Economics is a social science that is concerned with how individuals and societies
choose to use scarce _______________.
(a) employment
(b) output
(c) resources
(d) income
For most state governments, the major source of tax revenue is:
(a) property tax
(b) sales tax
(c) gas tax
(d) fines
According to the principles of economic base analysis, a region will grow economically
if it:
(a) imports more than it exports
(b) relies more on secondary and less on basic businesses
(c) reduce the number of highly skilled workers
(d) increases its exports
A neighborhood includes all of the following except:
(a) similar land uses
(b) similar values
(c) sewer lines
(d) boundary
New rural subdivisions may be:
(a) used for recreational purposes
(b) marketed for second homes
(c) used for retirement purposes
(d) all of the above
Neighborhood boundaries can be defined by:
(a) zoning
(b) topography
(c) river
(d) all of the above
Overhead costs consist of:
(a) materials
(b) rental equipment
(c) office rent
(d) day labor
In the long-run, the most important demand variable is population change. But in the
short-run, the most important demand variable is change in the:
(a) divorce rate
(b) availability of affordable mortgage credit
(c) income levels of buyers
(d) rate of new home construction
Equilibrium is where:
(a) competitive markets are not matched
(b) sellers have the advantage
(c) buyers are after fewer goods
(d) buyers and sellers are matched
Foreign purchases of real estate tend to increase when the:
(a) value of the dollar increases
(b) U.S. economy and the country of the potential foreign investor is in recession
(c) foreign country faces political or economic instability
(d) barriers to free trade are increased
A decrease in demand is illustrated by a:
(a) shift of the demand curve to the right
(b) shift of the demand curve to the left
(c) movement along the demand curve
(d) increase in the quantity demanded
The discount rate is:
(a) the interest rate the Fed charges banks
(b) not all that important for banks
(c) what banks charges customers
(d) not a means to discourage banks from borrowing money
The value of a specific site is most influenced by:
(a) neighborhood trends
(b) regional trends
(c) national
(d) city trends
Lifestyle is what kind of force:
(a) political
(b) economic
(c) social
(d) economic
The ability to quickly convert an asset to cash is called:
(a) conversion rate
(b) leverage
(c) yield
(d) liquidity
Government-imposed rent controls tend to:
(a) increase the supply of housing units
(b) reduce the rate of expansion of housing units
(c) decrease the demand for housing units
(d) increase rates of returns on housing units
Most zoning occurs at the:
(a) federal level
(b) state level
(c) at the state and federal level
(d) local level
Basic property rights include:
(a) the right to encumber
(b) the right to possess
(c) the right to dispose
(d) all of the above