Chapter 1 Flashcards
All of the following factors would affect supply EXCEPT
a. population.
b. construction costs.
c. government controls.
d. the labor force.
A. Population
Which of the following real property use categories would include shopping centers?
a. Residential
b. Commercial
c. Agricultural
d. Industrial
b. Commercial
All of the following would affect demand EXCEPT
a. population.
b. demographics.
c. wage levels.
d. fiscal policy.
d. fiscal policy
The word improvement refers to all of the following EXCEPT
a. streets.
b. sewage systems.
c. chattels.
d. foundation walls.
c. chattels
The point at which supply and demand are balanced is known as
a. highest and best use.
b. balance.
c. conformity.
d. equilibrium.
d. equilibrium
When the supply of a commodity decreases,
a. prices tend to rise.
b. prices tend to drop.
c. demand tends to rise.
d. demand tends to drop.
a. prices tend to rise
Which of the following best defines real estate?
a. Land and air above it
b. Land and the buildings permanently affixed to it
c. Land and all of the things permanently affixed to it
d. Land and the mineral rights in the land
c. Land and all of the things permanently affixed to it ( P.2)
Which of the following is not a physical characteristic of the land?
a. Indestructibility
b. Scarcity
c. Immobility
d. uniqueness
c.Immobility (P.4)
In North Carolina, the term provisional broker refers to
a. a realtor
b. a license who must operate under the supervision of a broker In charge
c. a licensee who must focus on a specialty area of real estate
d. an individual who has invested in real estate
b. a license who must operate under the supervision of a broker In charge (P.9)
Situs refers to
a. view from the property
b. improvements made to the building site
c. societal factors that related to the location
d. immobility of real estate
c.societal factors that related to the location (p.5)
Which of the following is not an economic characteristic of real estate?
a. indestructibility
b. scarcity
c. permanence of improvement
d. location
a. indestructibility (P.4)
Which of the following physical and economic factors would a land developer take into consideration when determining the optimum use of a parcel of land?
a. Transportation
b. Available natural resource
c. Contour and elevation
d. All of these
d. all of these (P.6)
A theater or hotel would be classified under the real estate category of
a. residential.
b. commercial.
c. agricultural.
d. industrial.
b. commercial
The demand for real estate is influenced by the
a. number of real estate brokers in the area.
b. ethnic makeup of neighborhoods
c. wage levels and employment opportunities in the area.
d. price of new homes being built in the area versus the price of existing homes.
c. wage levels and employment opportunities in the area. (P.11)
The designation REALTOR refers to I. any licensed real estate broker II. an active member of the National Association of Realtors a. I only b. II only c. Both I and II d. Neither I nor II
b. II only (p. 10)
Which of the following statements are/is true of business cycles?
I. Business cycles involve periods of expansion, recession, depression and revival.
II. The real estate business cycle is quicker to recover from depressed times than other business sectors.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
a. I only (P.14)
All of the following factors tend to affect supply EXCEPT
a. the labor force
b. construction costs.
c. government controls
d. demographics
d. demographics (p.12)
Real Estate can be a poor investment if
a. the inflation rate is high
b. the investor plans to hold the investment for a long time.
c. the investor needs ready cash.
d. land values are appreciation in the area
c. the investor needs ready cash. (p. 7)
In general, when the supply of a. certain commodity increases, prices
a. tend to rise
b. tend to drop
c. tend to stabilize
d. can no longer be established
b. tend to drop (p. 11)
The demand for real estate in a particular community is LEAST affected by
a, population
b. wage levels
c. employment.
d. international trade
d. international trade (p. 14)
The real estate market is considered local in character for all of the following reasons EXCEPT
a. land is fixed or immobile
b. consumers generally invest in real estate that is near their home or work.
c. local controls can have a significant impact on the market
d. most people eagerly visit and invest in real estate in distant areas
d. most people eagerly visit and invest in real estate in distant areas (p.11)
Highest and best use of real estate will
a. maximize the property’s value
b. stay constant throughout time
c. always be the property’s current use
d. not be affected by local economic trends
a.maximize the property’s value (p.6)
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What affect will this announcement most likely have on the small town’s housing market?
a. Houses will likely becomes less expensive
b. Houses will become more expensive
b. Houses will become more expensive (p.13)
A buyer is interested in a host that fits more of her needs but is located ins a busy street area where she is not sure she wants to love. Her concern about the property’s location is called
a. physical deterioration
b. area preference
c. permanence of investment
d. immobility
d. area of preference (P.5)
