Chapter 9

Question 1

A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them.

Answer 1

Market

Question 2

In economic theory, the principle that states that the price of a commodity, good, or service varies directly, but not necessarily proportionately, with ____1___, and inversely, but not necessarily proportionately, with ____2___.

Answer 2

1. Supply

2. Demand

Question 3

a gathering of people for the buying and selling of things

Answer 3

Market

Question 4

Buyers and sellers of particular real property and the transactions that occur among them

Answer 4

Real property Market

Question 5

A market characterized by numerous transactions.

Answer 5

Active Market

Question 6

A market in which buyers have the advantage; exists when market prices are relatively low due to an oversupply of property or reduced buyer demand.

Answer 6

Buyer’s Market

Question 7

An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users.

Answer 7

Seller’s Market

Question 8

A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices.

Answer 8

Depressed Market

Question 9

According to the principle of supply and demand, the price of a commodity varies ___________ with supply.

proportionately
independently
inversely
none of the above

Answer 9

Inversely

Question 10

“A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them” is the definition of

exchange rate
marketing plan
exchange
market

Answer 10

Market

Question 11

The principle of supply and demand states that the price of a commodity varies ________ with demand.

proportionately
directly
independently
none of the above

Answer 11

Directly

Question 12

a mechanism for bringing together buyers and sellers. It may or may not be in a particular physical location

Answer 12

A market

Question 13

Buyers and sellers of particular real estate and the transactions that occur among them.

Answer 13

Real Estate Market

Question 14

The problem with the real estate market is

Answer 14

Demand high, supply can be low or slow to change

Question 15

The real estate market is

perfect
imperfect
stable
unstable

Answer 15

imperfect

Question 16

A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.

Answer 16

Neighborhood

Question 17

A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural.

Answer 17

District

Question 18

The area associated with a subject property that contains its direct competition.

Answer 18

Market Area

Question 19

Some national trends have contributed to the decline of values in a particular area
the Great Depression
emigration to the South and West
post World War II construction

Answer 19

Long-term cycles

Question 20

Two factors are typically responsible for ________: the level of interest rates, and the amount of credit available.
availability of mortgages

Answer 20

Short-Term cycles

Question 21

The principle of supply and demand states that the price of a commodity varies ________ with demand.

Answer 21

Directly

Question 22

Because real estate is immobile, it is

Answer 22

Sensitive to nearby influences

Question 23

What is the supply of real estate in a market?

Answer 23

The existing stock of parcels of real estate

Question 24

A real estate market is defined in terms of

Answer 24

Market Boundaries

Question 25

When supply and demand are out of balance, they tend to move towards

Answer 25

Equilibrium

Question 26

True or False? Real property is typically purchased with cash.

Answer 26

False

Question 27

“The area associated with a subject property that contains its direct competition" is the definition of

Answer 27

Market Area

Question 28

Which of these is NOT a characteristic of an efficient market? homogeneous product stable prices immobility of product large number of buyers and sellers

Answer 28

Immobility of a product

Question 29

“A market in which product differentiation exists, there is a lack of important product or market information, and some of the producers and/or consumers are significant enough to affect the price and quantity of goods by their actions alone” is the definition of a(n) ____________ market. perfect distressed imperfect buyer’s

Answer 29

Imperfect

Question 30

“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of neighborhood district market central business district

Answer 30

District

Question 31

“An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users” is the definition of a(n) __________ market. buyer’s seller’s declining depressed

Answer 31

Seller's

Question 32

All of the following would be participants in the real property market EXCEPT real estate agents attorneys developers economists

Answer 32

Economists

Question 33

“A market characterized by numerous transactions.” is the definition of a(n) _________ market. buyer’s seller’s active depressed

Answer 33

active

Question 34

Real property is unique as an economic good in that it is immovable impossible to finance stably priced homogeneous

Answer 34

immovable

Question 35

A real estate market is defined in terms of __________. physical factors supply external factors competition

Answer 35

competition

Question 36

A problem with the real property market is that the amount of _______ is slow to change. supply demand supply and demand new customers

Answer 36

supply