Study Guide Questions Unit 1

Question 1

Office buildings an retail spaces are example of

Answer 1

Commercial Real Estate

Question 2

A married couple filing a joint tax return can exclude up to 500, 000 of profit on the sale of their principal residence from

Answer 2

Capital Gains Tax

Question 3

All of these factors will tend to affect demand for real estate EXCEPT

Answer 3

Construction and Material Costs.

Question 4

The idea that no two parcels of land are exactly alike is called

Answer 4

Uniqueness

Question 4

When the population of a town suddenly increases, which of these is MOST likely to occur?

Answer 4

Real estate prices will increase

Question 5

Property management, appraisal, financing, and development are all

Answer 5

Separate professions within the real estate industry

Question 6

The factors that can affect the demand for real estate include

Answer 6

Demographics

Question 7

A property owner who does not want to deal with the everyday tasks of managing a rental property can hire

Answer 7

A Property Manager

Question 8

When the supply of a certain commodity decreases while demand remains the same, the price of that commodity will tend to

Answer 8

Increase

Question 9

A factor that affects the supply of real estate but is not usually under government control is

Answer 9

A shortage of skilled labor of building materials