Unit quiz 1

Question 1

The moral principles of a profession include:

A. Standards for integrity as well as code of conduct

B.Standards for integrity and competence in dealing with consumers

C.Neither standards for integrity nor a code of conduct.

D.a code of conduct for relations within the industry among its professionals.

Answer 1

A.standards for integrity as well as a code of conduct.

Question 2

An increase in the following would affect supply EXCEPT

A.construction costs.

B.population

C.the labor force.

D.governmental controls.

Answer 2

B.population

Question 3

In general, when the supply of a certain commodity increases,

A)price tends to rise.

B)demand for it tends to rise.

C)price tends to drop.

D)demand for it tends to drop.

Answer 3

C) price tends to drop.

Question 4

Home inspection is a profession that combines interest in

A) real estate and construction skills.

B) property management and landscaping.

C) government ordinances and remodeling.

D) pest control and construction skills.

Answer 4

A) real estate and construction skills.

Question 5

A person or company responsible for maintaining a client’s property and maximizing the return on the client’s investment is serving as

A) a building maintenance specialist.

B) a rental agent.

C) an investment counselor.

D) a property manager.

Answer 5

D) a property manager.

Question 6

The basic responsibility of the property manager is

Answer 6

to protect the owner’s investment and maximize the return on investment.

Question 7

A real estate professional who helps clients choose among the various alternatives involved in purchasing, using, or investing in property is a

A)real estate appraiser.

B)real estate educator.

C)real estate counselor.

D)home inspector.

Answer 7

C)real estate counselor.

Question 8

The moral principles of a profession include

Answer 8

standards for integrity and competence in dealing with consumers and a code of conduct for relations within the industry among its professionals.

Question 9

All of the following would affect demand EXCEPT

A)monetary policy.

B)population.

C)wage levels.

D)demographics.

Answer 9

A)monetary policy.

Question 10

As population grows, so does the

Answer 10

demand for housing.

Question 11

Increases in construction costs, governmental controls, and the labor force affect

Answer 11

supply.

Question 12

If demand is constant and supply increases, sellers

Answer 12

compete with each other by lowering prices.

Question 13

A real estate counselor

Answer 13

advises and guides investors and other buyers.

Question 14

When demand for a commodity decreases and supply remains the same,

A)price tends to rise.

B)price is not affected.

C)price tends to fall.

D)the market becomes stagnant.

Answer 14

C)price tends to fall.

Question 15

Under the concept of supply and demand, if demand decreases and supply remains the same,

Answer 15

producers need to attract more customers, and so prices fall.

Question 16

the supply of land available for development is affected by

Answer 16

Government monetary policies

Question 17

Population, demographics, and wage levels affect

Answer 17

demand for real estate.

Question 18

Property management, appraisal, financing, and development are all examples of

A)non–real estate professions.

B)specializations within the real estate industry.

C)factors affecting demand.

D)activities requiring broker management and supervision.

Answer 18

B)specializations within the real estate industry.

Question 19

A real estate salesperson

A)may conduct business without a broker affiliation.

B)must be a member of the local multiple listing service.

C)must be a member of the National Association of REALTORS®.

D)is a licensee employed by or associated with a broker.

Answer 19

D)is a licensee employed by or associated with a broker.

Question 20

True or False: A real estate salesperson may not provide any service that requires a real estate license without also having the broker affiliation.

Answer 20

True

Question 21

The National Association of REALTORS® (NAR)

A)is the tenth-largest trade association in the country.

B)is the largest real estate trade association in the country.

C)is the second-largest trade association in the country.

D)has somewhat less than one million members.

Answer 21

B)is the largest real estate trade association in the country.

Question 22

Members of professional associations are expected to comply with the

A)code of ethics as set forth by each organization.

B)code of standards.

C)standard operating morals.

D)code of brokers.

Answer 22

A)code of ethics as set forth by each organization.

Question 23

Industrial real estate includes

A)warehouses, factories, land in industrial districts, and power plants.

B)warehouses and factories.

C)land in industrial districts.

D)power plants.

Answer 23

A)warehouses, factories, land in industrial districts, and power plants.

Question 24

A real estate firm or an individual real estate professional

A)never performs all services and handles all classes of property.

B)is prohibited by law from handling all classes of property.

C)usually performs all the services and handles all classes of property.

D)rarely performs all the services or handles all classes of property.

Answer 24

D)rarely performs all the services or handles all classes of property.

Question 25

The words broker and REALTOR® are

A)different titles offered by separate professional organizations.

B)not necessarily related; a broker is a real estate licensee, and a REALTOR® is a real estate licensee who is a member of the National Association of REALTORS®.

C)different categories of membership in the National Association of REALTORS®.

D)interchangeable.

Answer 25

B)not necessarily related; a broker is a real estate licensee, and a REALTOR® is a real estate licensee who is a member of the National Association of REALTORS®.