Unit 1

Question 1

All of the following factors would affect supply EXCEPT

a. population.
b. construction costs.
c. government controls.
d. the labor force.

Answer 1

a. population.

Question 2

Which of the following real property use categories would include shopping centers?

a. Residential
b. Commercial
c. Agricultural
d. Industrial

Answer 2

b. Commercial

Question 3

All of the following would affect demand EXCEPT

a. population.
b. demographics.
c. wage levels.
d. fiscal policy.

Answer 3

d. fiscal policy.

Question 4

The word improvement refers to all of the following EXCEPT

a. streets.
b. sewage systems.
c. chattels.
d. foundation walls.

Answer 4

c. chattels.

Question 5

The point at which supply and demand are balanced is known as

a. highest and best use.
b. balance.
c. conformity.
d. equilibrium.

Answer 5

d. equilibrium.

Question 6

When the supply of a commodity decreases,

a. prices tend to rise.
b. prices tend to drop.
c. demand tends to rise.
d. demand tends to drop.

Answer 6

a. prices tend to rise.