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Flashcards in Unit 1 Questions Deck (20)
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1

Which of the following best defines real estate?
A. Land and the air above it
B. Land and the buildings permanently affixed to it
C. Land and all things permanently affixed to it
D. Land and the mineral rights in the land

C. (2)

2

Which of the following is NOT a physical characteristic of land?
A. Indestructibility
B. Scarcity
C. Immobility
D. Uniqueness

B. (4)

3

In North Carolina, the term provisional broker refers to
A. a REALTOR®.
B. a licensee 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. (9)

4

Situs refers to
A. view from the property.
B. improvements made to the building site.
C. societal factors that are related to the location.
D. immobility of real estate.

C. (5)

5

Which of the following is NOT an economic characteristic of real estate?
A. Indestructibility
B. Scarcity
C. Permanence of improvement
D. Location

A. (4)

6

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 resources
C. Contour and elevation
D. All of these

D. (6)

7

A theater or hotel would be classified under the real estate category of
A. residential.
B. commercial.
C. agricultural.
D. industrial.

B. (11)

8

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. (14)

9

The designation REALTOR® refers to
any licensed real estate broker.
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. (10)

10

Which of the following statements is/are TRUE of business cycles?
Business cycles involve periods of expansion, recession, depression, and revival.
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. (14)

11

All of the following factors tend to affect supply EXCEPT
A. the labor force.
B. construction costs.
C. government controls.
D. demographics.

D. (12)

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 appreciating in the area.

C. (7)

13

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. (11)

14

In general terms, a market refers to which of the following?
A. Place where goods are standardized for sale
B. Amount of goods available at a given price
C. Quality of goods available to the public
D. Place where the value of goods is established

D. (11)

15

The demand for real estate in a particular community is LEAST affected by
A. population.
B. wage levels.
C. employment.
D. international trade.

D. (11)

16

The real estate market is considered local in character for all 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. (11)

17

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. (6)

18

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town’s housing market?
A. Houses will likely become less expensive as a result of the announcement.
A. Houses will likely become more expensive as a result of the announcement.
C. Because the announcement involves an issue of demographics, not of supply and demand, housing prices will stay the same.
D. The announcement involves an industrial property; residential housing will not be affected.

B. (13)

19

A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property’s location is called
A. physical deterioration.
B. area preference.
C. permanence of investment.
D. immobility.

B. (5)

20

A professional estimate of a property’s market value, based on established methods and using trained judgment, is performed by a
A. real estate appraiser.
B. real estate broker.
C. real estate counselor.
D. home inspector.

A. (9)