Ch. 19 The Real Estate Market Flashcards
The word market has many meanings, depending on usage. It can mean a place where farmers and tradespeople display their produce and products for buyers. It can mean a place where securities are exchanged, such as the commodities market or the stock market. Regardless of difference in form, the basic principles of market operation hold true for all. A market can function only when sellers and buyers interact. Many markets use intermediaries to facilitate activity between seller and buyer, and the
1
Q
The supply of available properties exceeds the demand.
A
buyer’s market
2
Q
The quantity of goods and services wanted by consumers.
A
demand
3
Q
One individual, or a group of individuals, living in one dwelling unit.
A
household
4
Q
The demand for available properties exceeds the supply.
A
seller’s market
5
Q
The quantity of goods or services offered for sale to consumers.
A
supply
6
Q
The percentage of rental units that are not occupied.
A
vacancy rate
7
Q
- Any economy in any nation mist find answers for three questions; what will be produced, who will do the producing, and
a. when will production cease?
b. what will production cost?
c. who will get what is produced?
d. which producers will produce what?
A
C
8
Q
- The company who will do the producing is the
a. biggest producer of a given product.
b. company that budgets the most for product promotion.
c. company that uses only part-time help to avoid expensive employee benefits.
d. most efficient producer of a comparable-quality product.
A
D
9
Q
- The ultimate decision makers in the marketplace are
a. salespersons.
b. producers.
c. manufacturers.
d. consumers.
A
D
10
Q
- Which characteristic does NOT describe the real estate market?
a. Land is indestructible.
b. The market is quick to respond to changes in supply and demand.
c. Real estate is heterogeneous.
d. Real estate is immobile.
A
B
11
Q
- Which statement is FALSE regarding the relationship between price and demand?
a. An increase in price causes a decrease in demand.
b. A decrease in price causes an increase in demand.
c. There is an inverse relationship between price and demand.
d. An increase in price causes an increase in demand.
A
D
12
Q
- Government controls influence the real estate market both directly and indirectly. An example of an indirect control is
a. zoning ordinances.
b. building moratoriums.
c. monetary policy.
d. building codes.
A
C
13
Q
- Which statement is NOT associated with the economic concept of demand?
a. Demand is the desire and ability to purchase or lease goods and services.
b. Changes in price cause an inverse change in demand.
c. Consumer preferences influence demand.
d. The availability of building materials influences demand.
A
D
14
Q
- Variables that influence demand include
a. consumer tastes and preferences.
b. population size and household composition.
c. consumer income.
d. all of the above.
A
D
15
Q
- Which statement does NOT describe the real estate market?
a. Real estate has become standardized thanks to technology.
b. Real estate is fixed in its location.
c. Land is permanent.
d. Federal monetary policy has an indirect influence on the real estate market.
A
A
