The Real Estate Market

Question 1

The supply of available properties exceeds the demand.

Answer 1

buyer’s market

Question 2

The quantity of goods and services wanted by consumers.

Answer 2

demand

Question 3

One individual, or a group of individuals, living in one dwelling unit.

Answer 3

household

Question 4

The demand for available properties exceeds the supply.

Answer 4

seller’s market

Question 5

The quantity of goods or services offered for sale to consumers.

Answer 5

supply

Question 6

The percentage of rental units that are not occupied.

Answer 6

vacancy rate

Question 7

1. 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?

Answer 7

C

Question 8

2. 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.

Answer 8

D

Question 9

3. The ultimate decision makers in the marketplace are a. salespersons. b. producers. c. manufacturers. d. consumers.

Answer 9

D

Question 10

4. 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.

Answer 10

B

Question 11

5. 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.

Answer 11

D

Question 12

6. 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.

Answer 12

C

Question 13

7. 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.

Answer 13

D

Question 14

8. Variables that influence demand include a. consumer tastes and preferences. b. population size and household composition. c. consumer income. d. all of the above.

Answer 14

D

Question 15

9. 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.

Answer 15

A

Question 16

10. When the equilibrium of the real estate market is upset by an excess supply a. builder activity increases in response to the need. b. a seller’s market exists. c. a buyer’s market exists. d. demand decreases.

Answer 16

C

Question 17

11. One person or a group of persons occupying a separate housing space is technically defined as a a. unit. b. household. c. family. d. multiple ownership unit.

Answer 17

B

Question 18

13. The barometer of the real estate market is considered to be the a. change in consumer income. b. cost and availability of credit. c. number of housing starts. d. change in consumer tastes.

Answer 18

B

Question 19

14. the typical homebuyer today is concerned primarily with the a. style of the house being current. b. total cost of the houses. c. amount of the monthly mortgage payment. d. occupancy and vacancy ratios.

Answer 19

C

Question 20

15. Factors affecting the supply side of the real estate market are related to a. availability of land. b. availability of skilled labor. c. availability of material. d. all of the above.

Answer 20

D