Per the Law of Demand, as local home prices drop, the:
(a) demand for homes should decrease
(b) quantity of homes demanded should increase
(c) supply of homes will increase in the short-run
(d) vacancy rate for homes should increase
The best sign of an economically healthy neighborhood is when there is no turnover in
occupants and owners.
(a) true
(b) false
Real estate economics applies __________ from both general economics and real estate
practice:
(a) money
(b) principles
(c) data
(d) findings
The psychological frame of mind of businesspeople and consumers is a cause of:
(a) business cycles
(b) fiscal policy
(c) monetary policy
(d) foreign investment
When a business might locate a business almost anywhere that zoning allows, how is
this type of business described?
(a) footloose
(b) location oriented
(c) material placement
(d) strategic placement
Neighborhood boundaries are sometimes defined by geographic features:
(a) true
(b) false
A developer should have a market analysis done prior to:
(a) marketing the property
(b) undertaking a real estate project
(c) grading
(d) none of the above
Our desire for goods and services:
(a) frequently exceed the supply available
(b) never exceeds the supply
(c) are always reasonable
(d) probably exceeds demand
In terms of economic base analysis, a computer software company would be considered
an export business:
(a) true
(b) false
A feasibility study attempts to determine the:
(a) governmental approval process
(b) profitability of alternative uses
(c) zoning market
(d) none of the above
When money is tied up in unimproved land, the income that the money might have
earned if invested elsewhere is called:
(a) opportunity cost
(b) overhead cost
(c) inflation cost
(d) social cost
The decision to demolish improvements is primarily based on the following rule:
(a) economics of succession
(b) comparative advantage
(c) principle of change
(d) competition of uses
Specialty businesses do not have customers that are willing to travel long distances.
(a) true
(b) false
In terms of features within a home, what buyers and renters look for is called:
(a) location
(b) accessibility
(c) linkage
(d) amenities
Changes in the supply of business real estate depend on the rate of:
(a) demolitions
(b) new constructions
(c) conversions
(d) all of the above
Active income includes:
(a) wages
(b) commissions
(c) profits from a personally managed business
(d) all of the above
Detached suburban shopping centers:
(a) date back to the 1920s
(b) started in the 1950s
(c) do not include neighborhood centers
(d) do not typically include banks
According to fiscal theory, a tax increase should:
(a) decrease private spending
(b) expand private savings
(c) fight unemployment
(d) create employment
If interest rates rise in the market place, then __________.
(a) demand for real estate declines
(b) the business cycle rises
(c) business expands
(d) demand for real estate rises
Macroeconomics is the study of the economics of individual businesses and
households:
(a) true
(b) false
Public works construction refers to:
(a) highways
(b) community water systems
(c) bridges
(d) all of the above
Before collecting relevant data an investor must:
(a) test tentative decisions
(b) obtain a copy of the general plan
(c) clearly define the problem or purpose
(d) obtain a copy of the zoning code
The risk of loss due to failure to receive payments as agreed is called:
(a) financial risk
(b) interest rate risk
(c) purchasing power risk
(d) social change risk
The rapid increase in environmental and pollution controls is:
(a) is a major for resource land
(b) is a short term problem for resource land
(c) in the near term, expected to decrease for resource land
(d) not supported by the public and their politicians
Compared to the boundaries of residential neighborhoods, boundaries of downtown
office neighborhoods are typically more precise:
(a) true
(b) false
Developers must conform to:
(a) federal requirements
(b) state requirements
(c) local codes
(d) all of the above
Economics is a(n) _______ science.
(a) familiar
(b) exact
(c) precise
(d) inexact
In the Wealth of Nations, Adam Smith stated that tax should be:
(a) flexible
(b) equitable
(c) based on net income
(d) based on gross income
Fiscal policy is the government’s use of:
(a) taxing and sending power
(b) only spending power
(c) only taxing power
(d) regulating the money supply by the Fed
Neighborhood change usually starts:
(a) around the neighborhood commercial area
(b) almost anywhere
(c) the edge of the boundaries
(d) in the center
In terms of a proposed real estate project, most government agencies
(a) charge a fee for accepting a required report
(b) have simple forms that are easy to complete
(c) quickly make yes or no decisions
(d) none of the above
A subdivision is considered “premature” if after several years:
(a) prices rise rapidly
(b) advance reservations for sale exceed expectations
(c) few homes have been built
(d) none of these