Question 1

When there is a sudden increase in the demand for housing in a community, the price of existing housing will

Accepted Answer

A)   rise slowly over the next 12 months.
B)   rise rapidly, then fall slightly as supply catches up with demand.
C)   not reflect the increased demand for approximately 12 months.
D)   none of the above. B

Question 2

Monetary inflation can be controlled by keeping the growth in the monetary supply parallel to the growth in productivity.

Accepted Answer

A) True 
 B)False  True

Question 3

Choose the one most appropriate answer for each.
-governing board of the nation's central bank

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability I

Question 4

The Texagum manufacturing Company, which was the largest employer in the city of Westview, recently closed its plant in that city. This will probably result in

Accepted Answer

A)   declining real estate values.
B)   A slow-down in the construction of new homes.
C)   A decline in the population of Westview.
D)   All of the above.

Question 5

From an investor's point of view, which is the most attractive allowable depreciation period for an investment property?

Accepted Answer

A)   40 years
B)   30 years
C)   27.5 years
D)   15 years

Question 6

By the year 1980, in order to curb inflation, the policy of the Federal Reserve became one of

Accepted Answer

A)   generous monetary growth.
B)   negative monetary growth.
C)   restrained monetary growth.
D)   constant, no-growth monetary supply.

Question 7

Industries which produce goods and services for export are referred to by all of the following terms EXCEPT

Accepted Answer

A)   base industries.
B)   export industries.
C)   primary industries.
D)   backbone industries.

Question 8

Choose the one most appropriate answer for each.
-inflation-adjusted

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability

Question 9

Choose the one most appropriate answer for each.
-requirement for housing based on age and income patterns

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability

Question 10

When the supply and demand relationship in a market is unbalanced because of excess supply, it is to the advantage of

Accepted Answer

A)   buyers.
B)   sellers.
C)   sellers of services only.
D)   buyers of services only.

Question 11

The Federal Reserve Board influences the national economy by adjusting interest rates.

Accepted Answer

A) True 
 B)False

Question 12

Demand-pull inflation has little to do with

Accepted Answer

A)   manufacturing costs.
B)   the availability of money.
C)   buyers bidding against each other.
D)   too much money chasing too few goods.

Question 13

Choose the one most appropriate answer for each.
-the creation of money by the Federal Reserve to purchase Treasury securities

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability

Question 14

Generally, a person's peak earning years occur at ages

Accepted Answer

A)   25-35 years.
B)   35-45 years.
C)   45-55 years.
D)   60 years.

Question 15

Choose the one most appropriate answer for each.
-the requirement for housing in a community

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability

Question 16

Typically, most families acquire their largest and most expensive housing between ages

Accepted Answer

A)   25 to 35.
B)   45 to 55.
C)   35 to 45.
D)   over age 60.

Question 17

Choose the one most appropriate answer for each.
-future demand for housing as seen by looking at the population and the ability of people to obtain income at various age levels

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability

Question 18

Choose the one most appropriate answer for each.
-dependency on the number of base industries present and the ability of those industries to continue to consistently export their products

Accepted Answer

A)  age distribution
B)  base industry
C)  buying pattern
D)  cost-push inflation
E)  demandF) demand-pull inflationG) economic baseH) employment multiplierI) Federal Reserve BoardJ) long-run demandK) monetary inflationL) monetize the debtM) primary industryN) realO) real-cost inflationP) secondary industryQ) service industryR) short-run demandS) supplyT) vulnerability

Question 19

In order to keep prices from falling in an economy that is growing at a 4 percent rate, which of the following is necessary?

Accepted Answer

A)   A 4% decrease in the money supply
B)   A constant, unchanging money supply
C)   A 2% increase in the money supply
D)   A 4% increase in the money supply

Question 20

During the period from 1975 to 1980, the attractiveness of real estate as an investment was enhanced by all of the factors below EXCEPT

Accepted Answer

A)   tax deductions for interest on mortgage loans.
B)   rapidly appreciating property values.
C)   capital gains tax treatment of sales.
D)   declining interest rates for mortgage loans.

Exam 25: Real Estate and the Economy

When there is a sudden increase in the demand for housing in a community, the price of existing housing will

Monetary inflation can be controlled by keeping the growth in the monetary supply parallel to the growth in productivity.

Choose the one most appropriate answer for each. -governing board of the nation's central bank

The Texagum manufacturing Company, which was the largest employer in the city of Westview, recently closed its plant in that city. This will probably result in

From an investor's point of view, which is the most attractive allowable depreciation period for an investment property?

By the year 1980, in order to curb inflation, the policy of the Federal Reserve became one of

Industries which produce goods and services for export are referred to by all of the following terms EXCEPT

Choose the one most appropriate answer for each. -inflation-adjusted

Choose the one most appropriate answer for each. -requirement for housing based on age and income patterns

When the supply and demand relationship in a market is unbalanced because of excess supply, it is to the advantage of

The Federal Reserve Board influences the national economy by adjusting interest rates.

Demand-pull inflation has little to do with

Choose the one most appropriate answer for each. -the creation of money by the Federal Reserve to purchase Treasury securities

Generally, a person's peak earning years occur at ages

Choose the one most appropriate answer for each. -the requirement for housing in a community

Typically, most families acquire their largest and most expensive housing between ages

Choose the one most appropriate answer for each. -future demand for housing as seen by looking at the population and the ability of people to obtain income at various age levels

Choose the one most appropriate answer for each. -dependency on the number of base industries present and the ability of those industries to continue to consistently export their products

In order to keep prices from falling in an economy that is growing at a 4 percent rate, which of the following is necessary?

During the period from 1975 to 1980, the attractiveness of real estate as an investment was enhanced by all of the factors below EXCEPT