Chapter 6 Questions

By Michael McMinassian

True or False 

1. To understand the allocation of uses to space, you need to understand this concept of highest and best use. 

2. Efficiency is a term to describe how quickly transaction prices within a market reflect relevant market information. 

3. Situs is the unique locational profile of a real estate site including the quality of its exposure and accessibility to neighboring activities and infrastructure. 

4. GSE stands for Governing Supply Equilibrium. 

5. Subprime market is the popular name for that market serving residential mortgage borrowers who do not qualify for standard hence mortgages. 

Multiple Choice

6.The price where supply and demand are in balance and all available product will be cleared from the market. 

A. Equilibrium market price 

B. Demand market shift

C. Supply market shift

D. Equilibrium shift.

7. What is the characteristic(s) for a perfectly competitive. 

A. Perfect Knowledge & Free market 

B. Critical Mass of Marketing Participants and Homogeneous Product & Product

C. Product & Input Mobility 

D. All of the above 

8. What is the main problem for maturity mismatch?

A. Unanticipated inflation went income adjustments fail to keep up with the rising cost of borrowing.

B. When there are dishonest brokers pushing loans through for commission.

C. When there is disinflation in the economy causing the value of homes to go up. 

D. All of the above. 

Key

1. T

2. T

3. T

4. F

5. T

6. A

7. B

8. A