Module 10 Quiz

Question 1

When analyzing geographic issues influencing real estate values, appraisers should consider linkages. What does linkage mean in regard to the value of real estate in the market?

A) Linkage is the relation to manmade geographic barriers such as freeways.

B) Linkage is the connection to natural geographic barriers such as rivers or mountains.

C) Linkage may be observed in a park-n-ride’s
association with public transportation.

D) Linkage is the relationship of time, distance, and cost of travel to places of employment, recreation, and commerce.

Answer 1

D) Linkage is the relationship of time, distance, and cost of travel to places of employment, recreation, and commerce.

Question 2

The light rail system is the result of coordinating

A) governmental and legal forces.
B) economic forces.
C) social forces.
D) environmental and geographic.

Answer 2

A) governmental and legal forces.

Question 3

Stock market averages drop 50% of their value in a 6month period. This is an example of which of the following forces?

A) social
B) environmental and geographic
C) governmental and legal
D) economic

Answer 3

D) economic

Question 4

An appraiser is analyzing a hotel property in a market area known for attracting tourism to its historic sites. The appraiser observes a pattern over several years that shows when airfares rise there is a reduction in
tourism traveling to the area. What underlying force on value has the appraiser observed?

A) governmental and legal
B) economic
C) environmental and geographic
D) social

Answer 4

B) economic

Question 5

When an appraiser is analyzing the economic ingredients that are interconnected in a real estate project, which ingredient, known as an agent of production, identifies the cost of facilitating all the other agents so that wealth is created in the market endeavor?

A) entrepreneurial coordination
B) capital
C) land
D) labor

Answer 5

A) entrepreneurial coordination

Question 6

Green building may be the result of

A) governmental and legal forces.
B) social, environmental, economic, and governmental forces interacting.
C) social forces and environmental/geographic.
D) economic forces.

Answer 6

B) social, environmental, economic, and governmental forces interacting.

Question 7

The term “economic as a force that influences value” refers to demographics and social trends.

True
False

Answer 7

False

Question 8

The four agents of production are:

A) land, labor, capital, and improvements.
B) land, labor, capital, and entrepreneurship.
C) land, improvements, labor, and materials.
D) land, labor, capital, and money

Answer 8

B) land, labor, capital, and entrepreneurship.

Question 9

“Superfund” is a term associated with constructing the interstate system.
True
False

Answer 9

Fales

Question 10

The term “linkages” refers to

A) the relationship between local, county, and state government.
B) the time-distance relationship between community amenities.
C) the connection between regional and hub airports.
D) the number of similar industries in a community.

Answer 10

B) the time-distance relationship between community amenities.

Question 11

Write a number on the line opposite each item below to indicate whether the item is
best described as
1. Governmental and legal
2. Economic
3. Social
4. Environmental and geographic

• A sunbelt city has a growing population of senior citizens.
• Stock market averages drop 40% of their value over a one-year period.
• The lack of snow in the last five years hurt several industries in the upper Midwest such as makers of snowmobiles, snow blowers, etc.
• To conserve natural resources, a city makes it easier for developers to get plans approved for clustered developments.
• Higher gas prices cause housing prices and rents to increase near the business centers of the city.
• Two-bedroom homes are in greater demand due to smaller families.
• The changing work environment causes home offices to increase in popularity.
• Couple decides against buying a property due to proximity to a landfill.
• Couple weighs two locations and decides to purchase a particular property because the area has high-speed Internet access.
• New interstate freeway creates a barrier dividing an existing neighborhood

Answer 11

Key:

1. Governmental and legal
2. Economic
3. Social
4. Environmental and geographic

Answers:
3 A sunbelt city has a growing population of senior citizens.
2 Stock market averages drop 40% of their value over a one-year period.
4 The lack of snow in the last five years hurt several industries in the upper
Midwest such as makers of snowmobiles, snow blowers, etc.
1 To conserve natural resources, a city makes it easier for developers to get
plans approved for clustered developments.
2 Higher gas prices cause housing prices and rents to increase near the
business centers of the city.
3 Two-bedroom homes are in greater demand due to smaller families.
2 The changing work environment causes home offices to increase in
popularity.
4 Couple decides against buying a property due to proximity to a landfill.
3 Couple weighs two locations and decides to purchase a particular property
because the area has high-speed Internet access.
4 New interstate freeway creates a barrier dividing an existing neighborhood