Chapter 1
1. Which one is NOT a reason why real estate markets are inefficient?
A. Stratified product types
B. Data poverty
C. Proprietary transactions
D. Scattered markets (P. 7)
2. A developer is…
A. Private individual
B. Group of individuals
C. A Corporation
D. A,B, and C (P.10)
3. Who takes care of day-to-day operations of the physical space?
A. Acquisition experts
B. Property managers (P.15)
C. Asset managers
D. None of the above
4. Speculation is a special form of real estate investment that involves postponing
immediate conversion of real property.
True (P. 7)
False
5. All real estate is sold in what can be called sequential bidding.
True
False (P. 8)
6. Mortgage brokers never actually loan money
True (P. 13)
False
7. The underwriter looks over the loan for any misinterpreted information, then passes it on for approval.
True
False (P. 14)
8. REIT is an acronym for Real Estate Investment Trust.
True (P. 16)
False
Chapter 2
1. Real estate areas of study for this applied discipline, fall within the parameters of what?
A. Applied Aim
B. Descriptive Aim
C. Prescriptive Aim
D. Both B and C (P. 31)
2. The discipline of finance is derived from…
A. Accounting
B. Societal indifferences
C. Economics (P. 24)
D. None of the above
3. The suggestive theory of the behavioral paradigm is based on the idea of…
A. Bounded rationality (P. 34)
B. Heuristics
C. Generalizability
D. None of the above
4. Hypothesis is a statement of belief suggested by fundamental theory.
True (P. 32)
False
5. Heuristics are shortcuts used to avoid errors and biases in judgment.
True
False (P. 35)
6. Anchoring, in most cases, is used by consumer subconsciously.\
True (P. 35)
False
7. Science’s specific aim is to describe nature.
True (P. 25)
False
8. An approach or technique used in descriptive research to turn beliefs into knowledge is an anomalous fact.
True
False (P. 30) Method
Chapter 3
1. Who invented the theory of human information processing?
A. Thomas Kuhn
B. Julian Diaz
C. Herbert Simon (P. 51)
D. Andrew Hansz
2. A component of short-term memory responsible for understanding the problem is…
A. Chunk
B. Language Interpreter (P. 52)
C. Problem space
D. Task environment
3. Which type of errors only results in bias?
A. Unsystematic errors
B. Systematic errors (P. 55)
C. Human error
D. None of the above
4. A gut feeling, is usually the final step before the decision is made.
True (P. 63)
False
5. Recognition memory is in the short term memory.
True
False (P. 63)
6. Problem space in the long-term memory?
True
False (P. 510
7. An ill-defined problem is a situation in which the parameters of the problem are not clearly defined and there is subsequently no single correct answer.
True (P. 50)
False
8. Human information problem solving is the process individuals go through to solve a proposed problem.
True (P. 50)
False
Chapter 4
1. Which is NOT a basic concept in Thunen’s Rings?
A. Accessibility
B. Land Rent
C. Land Location (P. 67)
D. Land Value
2. Which best describes the foregone opportunity one must give up to pursue another?
A. Transportation Cost
B. Operating Expenses
C. Opportunity Cost (P. 68)
D. None of the above
3. Homer Hoyt studied cities in the 1930’s, and concluded different pattern of development called what?
A. Sector growth model (P. 79)
B. Concentric circle growth model
C. Axial growth model
D. Population-to-employment ratio
4. The multiple nuclei concept recognizes that modern cities usually have more than one focal point.
True (P. 81)
False
5. Important location characteristics of a site is called layout.
True
False (P. 86) Situs
6. Urban economics studies the development, growth, and spatial economics relationships in urban areas.
True (P. 71)
False
7. A bid-rent curve shows maximum prices, rates, and purchase prices a bidder is willing to pay based on centralized location.
True
False (P. 69) Based on accessibility
8. The highest and best use of land is the use of land that produces the highest return or price to the landowner.
True (P. 71)
False
Chapter 5
1. The process of determining the future value of an income stream by applying appropriate time value of money concepts is called…
A. Discounting
B. Compounding (P. 89)
C. Future Value
D. None of the above
2. Capitalism is…
A. Right to own private property
B. To make a profit on real estate
C. The power and right of money to earn money (P. 89)
D. All of the above
3. A real estate borrower, is also known as…
A. Mortgagee
B. Mortgagor (P. 96)
C. A and B
D. None of the above
4. The IRR, stands for Investment Rate of Return
True
False (P. 93)
5. An annuity is a specific income stream characterized by equal payments over its life.
True (P. 95)
False
6. Net present value is the discounted value of an income-producing asset considering both cash inflows and outflows.
True (P. 107)
False
7. “Return on” is the portion of investment cash inflow designated as the of investment capital.
True
False (P. 120) Return of
8. An amortization schedule show the individual payments made, and also shows how much has been paid to interest and towards the principle.
True (P. 101)
False
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