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RECA > UNIT 1 - Overview of Real Estate > Flashcards

UNIT 1 - Overview of Real Estate Flashcards

1
Q

In common law, what does the term “real estate” refer to?

A) Land and fixed improvements to the land

B) An item that can be removed from the property without causing damage to the property

C) Items not securely affixed to the land or buildings

D) Land, fixed improvements to the land and intangible rights of ownership

A

A) Land and fixed improvements to the land

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2
Q

In common law, what does the term “real property” refer to?

A) Land and fixed improvements to the land

B) An item that can be removed from the property without causing damage to the property

C) Items not securely affixed to the land or buildings

D) Land, fixed improvements to the land and intangible rights of ownership

A

D) Land, fixed improvements to the land and intangible rights of ownership

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3
Q

Which of the following statements best describes the term “personal property”?

A) Land and fixed improvements to the land

B) A movable item that can be removed from the property without causing damage to the property

C) Items securely affixed to the land or buildings

D) Land, fixed improvements to the land and intangible rights of ownership

A

B) A movable item that can be removed from the property without causing damage to the property

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4
Q

Which of the following industries are self-regulated through RECA?

I. Real estate
II. Mortgage brokerage
III. Real estate appraisals
IV. Property Inspectors

A

Statements I, II and III

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5
Q

What are the factors of production?

A
  1. Land
  2. Labor
  3. Capital
  4. Entrepreneurship
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6
Q

Canadian economy is referred to as?

  1. Capitalist economy
  2. Socialist economy
  3. Mixed economy
  4. Traditional economy
A
  1. Mixed economy
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7
Q

Which of the following statements best defines quantity supplied?

  1. The quantity of a good or service that would be bought at a certain price
  2. The amount of good or service the market can offer at a certain price.
  3. The quantity of a commodity that people are willing to buy at a particular price at a particular point of time
  4. All of the above
A
  1. The amount of good or service the market can offer at a certain price.
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8
Q

Which of the following statements best defines quantity demanded?

  1. The quantity of a good or service that would be bought at a certain price
  2. The amount of good or service the market can offer at a certain price.
  3. The quantity of a commodity that producers provide over a given interval of time
  4. All of the above
A
  1. The quantity of a good or service that would be bought at a certain price
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9
Q

Which of the following statements is correct?

  1. Movements along the supply line occur when a change in quantity supplied is caused only by a change in price
  2. Shifts in supply line occur when there are changes in influencing factors other than price
  3. Movements along the supply line occur when there’s a change in the price of the product or service which leads to a change quantity demanded
  4. Shifts in supply line occur when there’s a change in quantity demanded is due to an influencing factor other than price
A
  1. Movements along the supply line occur when a change in quantity supplied is caused only by a change in price
  2. Shifts in supply line occur when there are changes in influencing factors other than price
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10
Q

Which of the following are the key non-price determinants of supply?

  1. Production costs
  2. Technology
  3. Consumer expectations
  4. Availability of credit
A
  1. Production costs

2. Technology

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11
Q

Which of the following are the key non-price determinants of demand?

  1. Producer expectations
  2. Market Size
  3. Consumers’ disposable income
  4. Consumers’ disposable income
A
  1. Market Size
  2. Consumers’ disposable income
  3. Consumers’ disposable income
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12
Q

Which of the following statements best describe Market Equilibrium?

  1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence
  2. When the quantity demanded exceeds the quantity supplied at the current price
  3. When the quantity supplied exceeds the quantity demanded at the current price
  4. When the quantity of goods supplied is equal to the quantity demanded
A
  1. When the quantity of goods supplied is equal to the quantity demanded
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13
Q

Which of the following statements best describe Market Surplus?

  1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence
  2. When the quantity demanded exceeds the quantity supplied at the current price
  3. When the quantity supplied exceeds the quantity demanded at the current price
  4. When the quantity of goods supplied is equal to the quantity demanded
A
  1. When the quantity supplied exceeds the quantity demanded at the current price
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14
Q

Which of the following statements best describe Market Shortage?

  1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence
  2. When the quantity demanded exceeds the quantity supplied at the current price
  3. When the quantity supplied exceeds the quantity demanded at the current price
  4. When the quantity of goods supplied is equal to the quantity demanded
A
  1. When the quantity demanded exceeds the quantity supplied at the current price
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15
Q

Which of the following statements best describe Market Bubble?

  1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence
  2. When the quantity demanded exceeds the quantity supplied at the current price
  3. When the quantity supplied exceeds the quantity demanded at the current price
  4. When the quantity of goods supplied is equal to the quantity demanded
A
  1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence
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16
Q

What is GDP?

  1. The monetary value of all finished goods and services produced within the country in a given period
  2. GDP includes all consumer, government and business spending plus the exports less imports
  3. The monetary value of all finished goods produced by a country’s citizens and enterprises whether physically located in its borders or abroad
  4. All of the above
A
  1. The monetary value of all finished goods and services produced within the country in a given period
  2. GDP includes all consumer, government and business spending plus the exports less imports
17
Q

What is GNP?

  1. The monetary value of all finished goods and services produced within the country in a given period
  2. GNP includes all consumer, government and business spending plus the exports less imports
  3. The monetary value of all finished goods produced by a country’s citizens and enterprises whether physically located in its borders or abroad
  4. GNP does not include income earned within a country’s borders by foreign residents.
A
  1. The monetary value of all finished goods produced by a country’s citizens and enterprises whether physically located in its borders or abroad
  2. GNP does not include income earned within a country’s borders by foreign residents.
18
Q

Changes in economic activity are generally caused by which of the following reasons?

  1. Seasonal changes
  2. Business cycle
  3. Secular trends
  4. Social trends
A
  1. Seasonal changes
  2. Business cycle
  3. Secular trends
19
Q

Which of the following are the stages of a business cycle?

  1. Expansion, Prosperity, Peak, Contraction, Recession, Trough and Recovery
  2. Expansion, Prosperity, Recession, Trough and Recovery
  3. Introduction, growth, maturity and decline
  4. Growth, maturity, regeneration and decline
A
  1. Expansion, Prosperity, Peak, Contraction, Recession, Trough and Recovery
20
Q

Who is responsible for the Real Estate Act?

  1. Minister of Infrastructure
  2. Minister of Municipal Affairs
  3. Minister of Service Alberta
  4. Minister of Service Canada
A
  1. Minister of Service Alberta
21
Q

What happens in the Expansion phase of business cycle ?

A) Economy grows

B) GDP decreases

C) Unemployment rises

D) Downward pressure on prices (inflation rises) as output increases

A

A) Economy grows

22
Q

What are the phases in a business cycles (in correct order)?

A) Expansion, Prosperity, Peak, Contraction, Recession, Trough, Recovery

B) Expansion, Peak, Recession, Recovery

C) Expansion, Peak, Contraction, Recovery, Trough, Recession

A

A) Expansion, Prosperity, Peak, Contraction, Recession, Trough, Recovery

23
Q

What is a market bubble?

A) Market bubble is a situation in the business cycle where prices for a product become lower than its realistic value

B) Market bubble is a temporary situation in the business cycle where prices for a product become grossly inflated beyond its realistic value

C) Market bubble occurs when consumers believe that the market prices will crash

A

B) Market bubble is a temporary situation in the business cycle where prices for a product become grossly inflated beyond its realistic value

Market bubble occurs when property prices go up to their realistic value due to an increase in consumer demand

24
Q

Which of the following are costs of Economic Growth?

I. Depletes natural resources

II. Raises Inflation Rate

III. Increases Environmental Impacts

IV. Increases rate of unemployment

A

I. Depletes natural resources

II. Raises Inflation Rate

III. Increases Environmental Impacts

25
Q

A commercial building has 4,400 square meters of available office space for rent. By year end, 1,200 square meters remains vacant.

What is the Vacancy Rate?

A

vacancy rate = 1,200*100/4400 = 27.27

The rate is calculated by taking the number of vacant units, multiplying that number by 100, and dividing that result by the total number of units. The

26
Q

What are the physical characteristics of Real Estate?

A) Unique, Durable, Scarce
B) Unique, Dynamic, Standardized
C) Unique, Fixed, Durable, Scared
D) Stable, Rigid, Durable

A

C) Unique, Fixed, Durable, Scarce

27
Q

The demand for office space is primarily the result of which of the following?

A) Growth of businesses
B) Increase in employment rate
C) increased employment in the services and financial sector
D) Increase in GDP

A

C) increased employment in the services and financial sector

28
Q

What are the types of real estate markets?

I. Balanced market
II. Sellers’ market
III. Buyers’ market
IV. Unbalanced Market

A

I. Balanced market
II. Sellers’ market
III. Buyers’ market

29
Q

What type of the market is it when the inventory of properties (i.e. supply) in the market exceeds the number of buyers competing for that inventory.

A) Buyers Market
B) Sellers Market
C) Balanced Market
D)Equilibrium Market

A

A) Buyers Market

30
Q

Chattels are also referred to as what type of property?

A) Private property
B) Individual property
C) Personal property
D) Exclusive property

A

C) Personal property

31
Q

What are the 4 factors of production?

A

Land, Labor, Capital & Entrepreneurship

RECA (12 decks)

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