UNIT 1 EXAM Flashcards

UNIT 1 EXAM Flashcards Why is "area preference" considered the single-most important economic characteristic of land?A) Because "area preference" expresses an individual's desire to own a property that meets what often is an abstract need, such as a home on a golf course or a highrise condo with specific viewB) Because "area preference" is gauged by scarcity of available property, such as when a new highrise condo is nearly sold out and a new buyer must act quicklyC) Area preference is not considered an important element because it is typically based on non-fact-based emotion.D) Because "area preference" is always based on already completed improvements to a property A AReal estate license holders who are not members of the National Association of REALTORS® may call themselvesA)Certified Residential Specialists.B)Seller Representative Specialists.C)license holders or agents.D)REALTORS®.Wetlands issues often are resolved by the Texas Commission on Environmental Quality, which enforcesA)county law.B)city ordinances.C)constitutional law.D)regulation of state and federal agencies.D DIf market analysis suggests there is need for a new condo development, but two developments are constructed across the street from each other, will supply and demand determine which is successful?A)No, success will be determined by which project is completed first.B)No, the law of supply and demand suggests each building will be half full or empty.C)Yes, under the law of supply and demand, they will both be successful.D)Success is likely to be based on something other than "supply and demand," such as pricing.AWhich statement is TRUE?A)Real estate markets are usually different in different sections of the same city.B)Real estate markets are usually identical in different sections of the same city.C)Real estate markets are always the same in different sections of the same city.D)Real estate markets are never the same in different parts of the same city.CA structure that has retail shopping on the first two floors, offices on floors 3 through 15, and apartment units on floors 16 through 25, would have what

classification?A)ResidentialB)CommercialC)Mixed useD)Industrial ARelative scarcity is what type of land characteristic?A)MetaphysicalB)None of

theseC)PhysicalD)Economic

DSupply can be defined as which of the following?A)The quality of goods offered for sale at a given price during a given time periodB)None of theseC)The amount of goods offered for sale at a given price during a given time periodD)The amount of goods consumers are willing and able to buy at a given price during a given time period Which factor primarily affects supply in the real estate market?A)Government financial policiesB)PopulationC)DemographicsD)Employment A AWhen a large quantity of wood milled in the United States is exported to a foreign country, leaving a shortage for domestic construction projects, which would be negatively affected?A)Neither supply nor demandB)Demand for housingC)Supply of housingD)None of these.CRegulations passed by governmental agencies are a means of implementing and enforcing which kind of act?A)AdministrativeB)CourtC)LegislativeD)Common law AWhich one of these can be seen as harming the subjective value of a property?A)Cracked foundationB)Proximity to a major highwayC)Leaking roofD)Broken windows AWhy are real estate prices slow to adjust?A)All of theseB)Length of time to complete constructionC)Nonmobile nature of real estateD)Nonstandard characteristic of real estate Because of the nonhomogeneity of real estate, which statement is TRUE?A)Construction of an improvement on a parcel of land can affect the value and use of that particular parcel of land.B)No two parcels of land are ever exactly the same.C)The return on real estate is considered long term and relatively stable.D)Land cannot be depreciated and is not insurable.B Professional associations do all of the following EXCEPTA)keep members informed of developments in their field.B)pass legislation to regulate brokers and sales agents.C)improve standards and practices.D)provide a clearinghouse of information.B To qualify for license renewal and continue in business, license holders mustA)pass a state examination every year.B)remain residents of the state in which they were originally licensed.C)follow certain prescribed standards of business conduct and meet continuing education requirements.D)continue to deal only in the type of property for which they were originally licensed.The demand for real estate is affected byA)zoning ordinances.B)government regulations.C)the availability of construction materials.D)demographics.BMortgage rates respond to a variety of influences. Is one of them supply and demand?A)Yes, if the financial system