Chapter 15 Quiz & Review
A good balance between supply and demand for residential real estate is indicated when the vacancy rate is approx ____
5%
What is the correct order in which the criteria for estimating highest and best use should be considered?
Legally permissible, physically possible, economically feasible, and macimally productive
The real estate market experiences changes and cycles. What is the term used to describe the phase of the market where ther eis not enough demand to meet the current over-supply of available housing units?
buyers market
How does the real estte market react to shifts in consumer demand?
Slowly
In which condition does market equilibrium theoretically exist?
When supply and demand are in balance
Which of the following market factors will typically result in increased demand?
a decrease in prices
Which of the following best describes the free enterprise system?
a market system
In the real estate market, what is a developer considered to be?
a supplier
The real estate buisness cycle has four phases with no beggining and end. When at its peak the subsequent phases in order would be
contraction, trough and expansion
All of the following statements appy to the real estate market EXCEPT a. Situs value is value resulting from loaction b.real estate is immobile c. each parcel of real estate is unique d. the real estate market is national in nature
d. the real estate market is national in nature
Many visible "for sale" signs and an increased number of rentals may indicate the neighborhood has entered a period of ________
decline
Which of the following might be indicated if a neighbohood appears to have an abundance of "for sale" signs and an unusually high number of rentals available?
decline in the neighborhood may be indicated
Population, credit, income and consumer preferences are related to the ________ for real estate
demand
Which external force that affects value is indicated by the number of vacancies in an area?
economic
What is the correct order of the buisness cycle phases?
expansion, peak, contraction and trough
The social , economic, governmental and environmental forces that affect real estate values are referred to as ____________-
externalization
What term is used to describe the relatively new phenomenon in which small families move into older neighborhoods, renovate the propertires, and displace poorer residents?
gentrification
The use that creates the highest value to land is its ___________ and ____________ use.
highest and best use
Price and demand are inversely related, this means that demand will typically decrease as prices ______ and as prices decrease demand will typically _______
increase, increasae
Physical real estate is characterized as being _________ _________ and _________
indestructable, immobile and heterogeneous
The real estate market can best be described as being __________ and __________.
inefficient and unorganized
The four factors of production include what?
land, labor, capital and entrepreneurial ability
It has been determined that the value of three lots, each with a value of 10,000 each is 50,000 as a single tract parcel. Which concept does this illustrate?
plottage
If two or more parcels have a greater values as a single tract than the sum of their individual values as separate sites, their combination results in _________ value
plottage value
When estimating supply, it is not necessary to consider which of the following? a. price b. availabiity of materials c. availability of skilled labor d. availability of land
price
A __________ market exists when there is an excess of demand over supply
sellers market
Immigration and emigration into and out of a neighborhood are an influence on value that can be categorized as a ________ force
social
An economic term used to identify value which results from the location of a parcel of land is
situs
The real estate market is ________ to respond to changes in supply and demand
slow
The availabiity of materials, labor, financings and land are all associated with the ________ of real estate
supply
Two factors that affect a real estate market are supply and demand. Which of the following is a good indicator of the masure of supply versus demand
the vacancy rate in the community