FIN 186 EXAM II

New construction may:

New construction may:

increase vacancies

Real estate professionals can provide the following services except:

clearly identify property lines

Changes in real estate demand are caused by:

changes in population

A decrease in real estate demand causes:

increase in vacancies

One of the most fundamental principles of real estate economics is the recognition that:

supply of land is fixed

Business location factors include:

All of these:

• transportation

• site costs

• taxes

According to the principles of economic base analysis, a region will grow economically if it:

increases its exports

An expanded economic base:

helps a community survive

A region is referred to as:

group of communities

The two main techniques used to conduct a regional economic study are:

economic base study and input-output study

The most profitable use:

is a consideration in a highest and best use study

An expanded economic base:

helps a community survive

In terms of community land use patterns, topography does the following:

modifies the simple circles of accessibility

In regards to land, in the absence of public or private controls:

land will go to the highest bidder

Competition of uses specifically influences:

price paid for a given land site

Neighborhood change usually starts:

on the outer boundaries

Forces for neighborhood change include:

All of the above:

• political forces

• economic forces'

• physical forces

Non-economic community factors include:

All of the above:

• political forces

• legal forces

• social forces

Neighborhood boundaries can be defined by:

All of these:

• river

• topography

• zoning

Private deed restrictions can:

influence a neighborhood pattern

Demand for housing includes all of the following except:

wants

A major influence for housing demand is:

income

Local real estate trends can differ from national trends:

depending on the local market

The breakdown of the composition of a population according to age, sex, occupation, and income level is called:

demography

The demand for older rural homes is:

All of the above:

• influenced by nearby communities

• impacted by the existence of septic system and private wells

• impacted by accessibility

The demand for resource land is

NOT THE ANSWER: usually connected to the needs of the local economy

Changes in the supply of business real estate depend on the rate of:

All of the above:

• demolitions

• new constructions

• conversions

Business real estate includes:

commercial and industrial

Public land use controls are projected to

expand in most markets

Which of the following is true about the business property market?

buyer or seller may be a financial institution

Concentric Rings

• Inner: Commercial and offices

• Second: Older homes

• Third: Low and middle-cost housing

• Outer edges: Higher-priced homes and shops

Progressive Decay

without maintenance buildings deteriorate and decay with age

Demand Composition

the mix of types of housing

Inclusionary Zoning

requirement for developers to provide a certain percentage of the total housing units as subsidized low-income rental or for-sale housing