Friday, February 1, 2013
Chapter 1 Questions
1. What is the correct definition of real property?
A) The legally recognized right associated with the ownership of real estate.
B) The purchase of real estate motivated by the potential for financial gain.
C) How quickly a transaction prices with in a market reflect relevant market information.
D) Both A and B
2. Which one of the following characteristics does not contribute to an inefficient market?
A) Stratified product type
C) Real estate investment analysis
D) Data poverty
3. What is at the center of the real estate system of activities?
A) Investing activity
B) Governing activity
C) Entrepreneurial activity
D) Lending activity
4. A developer is an entrepreneur whose expertise is used to gather necessary factors of production to create real estate for human needs.
5. Sequential bidding is one characteristic of real estate inefficiency.
6. Government activity is part of the real estate system of markets.
7. An underwriter is a real estate professional who specializes in assessing the risk associated with real estate loans.
8. A real estate market has one specific physical location.
1)A, 2)C, 3)C, 4)A, 5)A, 6)A, 7)A, 8)BC