Monday, February 25, 2013

Ch.6 Questions By Jazmin Padilla

Ch.6  Questions By Jazmin Padilla
1.       Real Estate markets creates prices in order to perform all of the following except
a.       Inform investment decisions
b.      Stimulate or discourage development
c.       Allocate space to the highest and best use
d.      Create a perfectly competitive market

2.       As the price of a good decreases, the demand of the good will probably increase. 

3.       The supply model is a positive relationship, as the price good increases suppliers are willing to supply more. 

4.       A perfectly competitive market has of the following characteristics except:
a.       Free market
b.      Perfect knowledge
c.       Heterogeneous product
d.      Critical mass of market participants

5.       Real estate markets are perfectly competitive markets.

6.       Suppliers cannot always keep up with fluctuation cycles and experience production lags. 

7.       The market for capital asset and investment occurs between the entrepreneur activity and the consumer activity. 

8.       The dilemma faced by many homeowners in which they owe more on their home then the actual value of the home, is known as
a.       Underwater homes
b.      Maturity mismatch
c.       Disintermediation
d.      Mortgage securitization

Answers: 1.D  2.T  3.T  4.C  5.F  6.T  7.F  8.A

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