Exam 3 Real Estate Economics1. The application of economic techniques to real estate markets.A.Real Estate EconomicsB.Market StudyC.Project Feasibility Study2. These people prepare raw land for development and improvement which results in new product for the market.A.FacilitatorsB.DevelopersC.Bankers3. These people supply refurbished buildings to the market.A.DevelopersB.BrokerC.Renovators4. These people are both owners as well as tenants. They purchase houses or commercial property as an investment and also to live in or utilize as a business.A.Owner/UserB.OwnersC.Tenants5. These people are pure investors. They do not consume the real estate that they purchase. Typically they rent out or lease the property to ""someone else.A.Owner/UserB.TenantsC.Facilitators6. This includes banks, Real Estate Brokers, lawyers, and others that facilitate the purchase and sale of real estate.A.Marketing DepartmentB.Project developerC.Facilitators7. The owner/user, owner, and renter comprise what side of the market?A.DemandB.SupplyC.Equilibrium8. 9. The developers an renovators comprise what side of the market?A.DemandB.SupplyC.Equilibrium9. Real estate market characteristic that that denotes that every piece of real estate is unique, in terms of its location, in terms of the building, and in terms of its financing.A.Long Time DelayB.ImmobilityC.Heterogeneous10. Characteristic of real estate market that denotes that a building can last for decades or even centuries, and the land underneath it is practically indestructible.A.DurabilityB.ImmobilityC.Heterogeneous11. What real estate market characteristic denotes that consumers come to the good rather than the good going to the consumer?A.Long Time DelayB.ImmobilityC.High Transaction Cost12. The main determinants of the demand for housing are?A.MarketB.NeedC.Demographics13. In housing economics, the elemental unit of analysis isA.One household per houseB.FamilyC.Barangay14. For many people, will be the most costly item they will ever buy.A.JewelryB.Real estateC.Complete education15. Is produced using land, labor, and various inputs such as electricity and building materials.A.Housing demandB.Housing creditC.Housing supply16. In economics, is a revealed preference method of estimating demand o rvalueA.Hedonic regressionB.Highest & best useC.Market analysis17. Although land is not thought of as a rare commodity, the total supply of land is fixedA.ImmobilityB.ScarcityC.Heterogeneous18. The construction of a building on one parcel of land has an effect on the value and utilization of neighboring tracts of land and can have a big bearing onthe whole community.A.AccessoryB.ConformityC.Improvements19. Once a land is developed and improved, the capital and labor that went into the improvement represents a large fixed investment.A.Permanence of investment (fixity)B.Area preference (situs)C.Improvements20. The most important economic characteristics of land.A.ScarcityB.Area preferenceC.Fixity21. Stance of land is removable and that topography can be changed, but the geographical location of any given parcel/of land can never be changed.A.ScarcityB.FixityC.Immobility22. This permanence of land coupled with the long-term nature of improvements constructed on it, has tended to stabilize investment in land.A.IndestructibilityB.FixityC.Uniqueness23. The very unique characteristic of land is referred to as itsA.IndestructibilityB.Non-homogeneityC.Fixity24. The property must be needed or wanted by someone who has the purchasing power to obtain it.A.SupplyB.ScarcityC.Demand25. The property must have a useful purpose or satisfy a need. The more useful a property is the more likely someone will pay for it.A.UtilityB.ScarcityC.Supply26. The type of property must have some degree of rareness. This refers to the supply of similar property in relation to the demand for it...A.UniquenessB.ScarcityC.Utility27. The ability to transfer title to the property to someone else.A.VulnerabilityB.Non-homogeneityC.Transferability28. The value of a property tends to coincide with value indicated by the actions of informed buyers in the market for comparable properties.A.SubstitutionB.ChangesC.Balance29. Scarcity influences supply.A.Surplus productivityB.Demand & supplyC.Balance30. Today evolved out of yesterday and is the shadow of tomorrow.A.Highest & best useB.Surplus productivityC.Change31. Maximum value of land is created and maintained in proportion to theequilibrium (balance) in the amount (contribution) of the four agents in theproduction.A.Highest & Best UseB.Housing economicsC.Surplus Productivity32. Excess usually results in over improvement, deficiency under improvement.A.Highest & best useB.Surplus ProductivityC.Housing economic33. The application of larger and larger amounts of the agents in production willproduce greater and greater net income up to a point of excess.A.Surplus productivityB.Highest & best useC.Creasing & increasing & decreasing returns.34. It is as pointed out, a corollary of the principles of surplus productivity as itrelated to the proportioning of the agents in production.A.ContributionB.Surplus productivityC.Highest & best use35. Tends to dissipate and major portion of an excess profit although some partmay remain and contribute to an increased land value.A.ContributionB.CompetitionC.Distribution36. Highest and best use will usually conform to essential and permissible land used.A.DistributionB.CompetitionC.AnticipationD.None of the above37. Affirms the definitions that value is the worth of all present and future benefits arising from ownership and use of real property.A.ConformityB.CompetitionC.Anticipation38. One major Categories of the nature of Real Estate:A.EconomicB.Physical39. Four Factors that create value of real estate: DEMAND UTILITY SCARCITY TRANSFERABILITYA.DemandB.UtilityC.ScarcityD.Transferability40. Affirms the definitions that value is the worth of all present and future benefits arising from ownership and used of real propertyA.AntipationB.Both41. Value of a property is not established by what is sold for in the part not the cost to create.A.TrueB.False42. Value of a property is not established by what is sold for in the part not the cost to create.A.TrueB.False43. 50.Value of an over improvement sometimes reaches (progresses) toward thevaluel4 conforming properties.A.TrueB.False