Chapter 4 Location, Location, Location: The Spatial Dimension

by: Mario Jauregui

True or False

Locations are as old as time and have historical, political, cultural, and sentimental histories.

TRUE

Multiple Choice

Land value is a function of ___________________________. Another way to refer to it would be “location, location, location”.

            Land Rent

            Site Accessibility

            Spatial Economics

            Bid-Rent Curve

Site Accessibility

True or False

Usually, development has a pattern and a reason farmers, homeowners, developers, and investors choose specified locations, that reason is economics.

TRUE

True or False

An area’s competitive advantage is important to sustaining and growing an economic base.

TRUE

True or False

Employment in businesses and industries that are most important and directly responsible for an area’s competitive advantage is called economic base.

FALSE: It is called Basic (or export) EMPLOYMENT

Multiple Choice

Jobs in industries that are considered to serve the local population’s needs are called ____________________________.

            Basic (or export) Employment

            Basic Employment Multiplier

            Nonbasic (or population serving) Employment

            Local Population Jobs

Nonbasic (or population serving) Employment

Multiple Choice

An urban growth model that emphasizes the importance of major transportation corridors in urban development. Development occurs first and is densest near these primary transportation routes.

            Axial (or radial) Growth Model

            Multiple Nuclei Concept

            Concentric Circle Growth

            Sector (or wedge) Growth Model

Axial (or radial) Growth Model

True or False

The urban growth models are not just academic exercises. If you can identify and understand how a city grows, you have the potential to make good development decisions.

TRUE

Ch. 4 Objective Questions

Ch. 4 Objective Questions

Forrest Miller

1) Von Thunen's formula is _________

a) Property Tax = f(Property Value)

b) Land Value = f(Accessibility)

c) Accessibility = Land Value + Property Tax

d) Land Rent = Accessibility + Property Tax

2) The Three most important Real Estate characteristics are:

a) Location, Time, Price

b) Value, Square foot, Asking Price

c) Situs, Situs, Situs

d) Location, Situs, Price

3) The single land use that produces the highest return or price to a landowner is the definition of what term?

a) Economies of agglomeration

b) Highest and best use of land

c) Efficiency factor

d) Maximum return

T/F

4)  Urban economics definition is the study of country areas, including agriculture layouts and location of farms and migrant workers?

5) The Land Value Gradient is a positive upward sloped line.

6)  The Opportunity cost for buying a piece of real estate is the capital you paid for it?

7)  Fresno, CA has a competitive advantage because of the rich agriculture in the central valley area.

8) Basic Employment is a job in and industry that serves the local population's basic needs.

1) B

2) C

3) B

4) F

5) F

6) F

7) T

8) F

Ch. 1 Objective Questions

Ch. 1 Objective Questions: 3 Multiple Choice and 5 TF

Forrest Miller

1)  According to the Entrepreneurial Activity System Graph, entrepreneurial activity    market gives space and time to _________ and receives capital in return

a) Consuming Activity

b) Lending Activity

c) Governing Activity

d) Professional Activity

2)  What does the entrepreneurial activity give to the governing activity for infrastructure and regulations?

a) Ownership

b) Services

c) Return on Equity

d) Taxes

3) What makes a Broker unique?

a) They offer legal advice to realtors

b) They are hard money lenders

c) They facilitate the sale of real estate

d) They determine the property value of a house

T/F

4) A Developer is an entrepreneur whose expertise is used to gather necessary factors of production to create real estate for human needs?

5) A Property manager maintains and creates value by maximizing the attractiveness of properties?

6) The Sale of mortgages or assets derived from mortgages to investors is the book definition for Primary mortgage market?

7)  A Corporate Real Estate Executive is a company officer who is involved in real estate decision making within the organization

8) A real estate professional who specializes in assessing the risk associated with real estate loans is a Overwriter?

1) A

2) D

3) C

4) T

5) F

6) F

7) T

8) F

Chapter 1 Questions

1. As discussed in chapter one, the key to large returns is     ______________.

a.   rich clients

b.   superior information

c.   efficient markets

d.   punctuality

2. A real estate investor ____________.

a.   funds real estate projects in expectation of a return

b.   has control of the real estate in which they invest

c.   is the same thing as a successor entrepreneur

d.   specializes in renovating properties and selling them for a profit

3. According to activities model of real estate what do real estate entrepreneurs and consumers exchange?

a.   They exchange fees for services.

b.   They exchange return on equity for capital.

c.   They exchange space over time for capital.

d.   They exchange capital for debt service.

4. The government provides real estate entrepreneurs with infrastructure, regulation, and enforcement.

5. A mortgage broker is a real estate professional who assesses the risks of mortgages.

6. Real estate and real property are often used synonymously because they mean exactly the same thing.

7. Stratified product types make it difficult for a real estate agent who specializes in single family homes to transition to selling retail properties.

8. A developer can be an individual, a group of people, a corporation, or a government.

1.   b

2.   a

3.   c

4.   T

5.   F

6.   F

7.   T

8.   T

Chapter 1 Blog Questions

by: Mario Jauregui Fin180

True or False

A fruitful conceptualization of real estate is as artificially delineated space over time, as well as delineated in the law.

TRUE

True or False

Speculation is the application of tools and techniques to evaluate real estate investment opportunities.

FALSE

True or False

The more efficient a market is, the less opportunity market participants, both buyer and sellers, have of making extraordinary profits.

TRUE

Multiple Choice

What characteristic makes the real estate market so inefficient?

Globalized Market

Has a critical mass market of participants

Plentiful data

Heterogeneous Product

Heterogeneous Product

True or False

In real estate, the process of creating space begins with an entrepreneur; this entrepreneur is called a developer.

TRUE

True or False

A mortgage consists of one asset, a collateral agreement securing the loan.

FALSE

Multiple Choice

Which one best describes a mortgage banker?

A. A lender who specializes in using borrowed funds, usually from commercial banks, to originate real estate mortgage.

B. An intermediary who specializes in bringing real estate borrowers together with real estate lenders but who does not originate real estate mortgages.

A

Multiple Choice

A real estate professional specializing in providing an informed and defensible opinion of real estate asset value.

Asset Manager

Broker

Appraiser

Market Researcher

Appraiser 

The Writing Center

The Writing Center is open for your students to use its services M-TH 9-4 and F 10-2.  It it located in the Ed Bldg 184.  Tel.278-0334. www.csufresno.edu/writingcenter.

Twenty-five well-trained tutors are available this semester to help student writers at any stage of the writing process:

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The Writing Center has three kinds of services:

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