Question 1

Monthly payments on "exotic" mortgages are constant over the life of the mortgage.

Accepted Answer

A) True 
 B)False

Question 2

"Exotic" mortgages became popular in part because they allow someone of

Accepted Answer

A) means to get into a home they would easily have been able to afford. 
B) modest means to get into a home they might otherwise not have been able to afford. 
C) modest means to build more equity in their home than a traditional mortgage would allow. 
D) modest means to build their credit score by proving they could make challenging payments. 
A) means to get into a home they would easily have been able to afford. 
B) modest means to get into a home they might otherwise not have been able to afford. 
C) modest means to build more equity in their home than a traditional mortgage would allow. 
D) modest means to build their credit score by proving they could make challenging payments.

Question 3

In 2006 and 2007, for the first time in decades, in many major urban areas across the U.S.,

Accepted Answer

A) property tax rates decreased. 
B) housing prices began to fall. 
C) the NASDAQ stock market lost approximately 70% of its value. 
D) Springfield, Ohio became the nation's Least Affordable Place to Live according to NAHB. 
A) property tax rates decreased. 
B) housing prices began to fall. 
C) the NASDAQ stock market lost approximately 70% of its value. 
D) Springfield, Ohio became the nation's Least Affordable Place to Live according to NAHB.

Question 4

One economic factor that can restrain the maximum rate of home price appreciation is

Accepted Answer

A) the ready availability of negative amortization and pick-a-pay mortgage instruments. 
B) the ready availability of pay option adjustable rate mortgages. 
C) geographic barriers to residential development, such as mountains, oceans and swamps. 
D) a relatively elastic supply of land available for residential development. 
A) the ready availability of negative amortization and pick-a-pay mortgage instruments. 
B) the ready availability of pay option adjustable rate mortgages. 
C) geographic barriers to residential development, such as mountains, oceans and swamps. 
D) a relatively elastic supply of land available for residential development.

Question 5

In the 1950s, a traditional, thirty-year fixed rate mortgage would typically have been

Accepted Answer

A) securitized and sold to a consortium of foreign investors. 
B) held by the original lender or banker until it was paid off. 
C) available to the borrower without a down payment and without documentation of income. 
D) all of the options are correct. 
A) securitized and sold to a consortium of foreign investors. 
B) held by the original lender or banker until it was paid off. 
C) available to the borrower without a down payment and without documentation of income. 
D) all of the options are correct.

Question 6

The most affordable places to live tended to be located disproportionately in

Accepted Answer

A) California, New York and New Jersey. 
B) Michigan, Ohio and Illinois. 
C) Mississippi and Louisiana. 
D) all of these, because affordable places to live are randomly distributed geographically. 
A) California, New York and New Jersey. 
B) Michigan, Ohio and Illinois. 
C) Mississippi and Louisiana. 
D) all of these, because affordable places to live are randomly distributed geographically.

Question 7

Among the most important demand side factors explaining homes prices would be the size of the

Accepted Answer

A) metropolitan area. 
B) homebuyer's car. 
C) home. 
D) metropolitan area and home itself. 
A) metropolitan area. 
B) homebuyer's car. 
C) home. 
D) metropolitan area and home itself.

Question 8

The most affordable places to live tended to be located disproportionately in the

Accepted Answer

A) upper Mid-West. 
B) mid-Atlantic states and along the West Coast. 
C) Great Plains states. 
D) southeastern states. 
A) upper Mid-West. 
B) mid-Atlantic states and along the West Coast. 
C) Great Plains states. 
D) southeastern states.

Question 9

Among the most important demand side factors explaining homes prices would be the age of

Accepted Answer

A) the home. 
B) the homebuyer's car. 
C) Supreme Court justices. 
D) consent. 
A) the home. 
B) the homebuyer's car. 
C) Supreme Court justices. 
D) consent.

Question 10

Cities like Indianapolis and Dallas are unbounded by mountains or oceans while cities like Los Angeles and San Diego are bounded by both. A housing bubble is

Accepted Answer

A) equally likely to occur in all of these cities. 
B) more likely to occur in cities like Dallas and Indianapolis. 
C) more likely to occur in cities like Los Angeles and San Diego. 
D) unrelated to the supply of land. 
A) equally likely to occur in all of these cities. 
B) more likely to occur in cities like Dallas and Indianapolis. 
C) more likely to occur in cities like Los Angeles and San Diego. 
D) unrelated to the supply of land.

Question 11

Other things equal, increasing home prices tend to

Accepted Answer

A) force homeowners to spend less than they earn. 
B) allow homeowners to spend more than they earn. 
C) leave homeowners' ability to spend unaffected. 
D) increase the likelihood that homeowners will default on their mortgages. 
A) force homeowners to spend less than they earn. 
B) allow homeowners to spend more than they earn. 
C) leave homeowners' ability to spend unaffected. 
D) increase the likelihood that homeowners will default on their mortgages.

Exam 13: The Housing Bubble

Monthly payments on "exotic" mortgages are constant over the life of the mortgage.

"Exotic" mortgages became popular in part because they allow someone of

In 2006 and 2007, for the first time in decades, in many major urban areas across the U.S.,

One economic factor that can restrain the maximum rate of home price appreciation is

In the 1950s, a traditional, thirty-year fixed rate mortgage would typically have been

The most affordable places to live tended to be located disproportionately in

Among the most important demand side factors explaining homes prices would be the size of the

The most affordable places to live tended to be located disproportionately in the

Among the most important demand side factors explaining homes prices would be the age of

Cities like Indianapolis and Dallas are unbounded by mountains or oceans while cities like Los Angeles and San Diego are bounded by both. A housing bubble is

Other things equal, increasing home prices tend to

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters