Quiz - Unit 1 Basic Real Estate Concepts

Which of the following BEST defines real estate?

land and all things permanently affixed to it

In North Carolina, the term provisional broker refers to

a licensee who must operate under the supervision of a broker-in-charge

Situs refers to

societal factors that are related to the location

Which of the following is NOT an economic characteristic of real estate?

Indestructibility

Which of the following physical and economic factors would a land developer take into consideration when determining the optimum use of a parcel of land?

All of these

A theater or hotel would be classified under the real estate category of

commercial

The demand for real estate is influenced by the

wage levels and employment opportunities in the area

In North Carolina, the designation REALTOR refers to

an active member of the National Association of REALTORS

Which of the following statements is TRUE of business cycles?

Business cycles involve periods of expansion, recession, depression, and revival

Which of these does NOT tend to affect supply?

Demographics

Real estate can be a poor investment if

The investor needs ready cash

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

tend to drop

In general terms, a market refers to which of the following?

Place where the value of goods is established

The demand for real estate in a particular community is LEAST affected by

international trade

What characteristic makes real estate different from most other goods in the marketplace?

Every piece of real estate is unique and cannot be exactly duplicated

Highest and best use of real estate will

maximize the property’s value

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town’s housing market?

Houses will likely become more expensive as a result of the announcement

A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property’s location is called

area preference

A professional estimate of a property’s market value, based on established methods and using trained judgement, is performed by a

real estate appraiser

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

equilibrium

When the supply of a commodity decreases, and demand remains constant

prices tend to rise

All of the following factors would affect supply EXCEPT

population

All of the following would affect demand EXCEPT

fiscal policy

All of the following are physical characteristics of land EXCEPT

scarcity