Section 1 Chapter 4

In an ideal market, the forces of supply and demand are always chaotic.

False. In an ideal market, the forces of supply and demand remain in balance, with stable prices.

Our free enterprise system is free from government economic controls.

False. Our free enterprise system has many governmental economical controls.

Realtors determine the price of land.

False. Supply and demand determines the price of land.

Price is the amount paid for a parcel of real estate in an actual transaction.

True.

When pricing is allowed to react to the principles of supply and demand, the free enterprise system determines what will be produced.

True.

A real estate license of some kind would be required by each of the following individuals, EXCEPT: a. an individual who locates tenants for a property in return for a fee from the landlord b. a homeowner selling his or her personal residence c. an individual who only works with buyers looking to purchase a residence and who is compensated only by those buyers d. an individual who negotiates options to purchase properties for clients in return for a fee

b. a homeowner selling his or her personal residence

An associate broker who sells a house for a client is paid a commission by the a. employing client only b. broker only c. customer d. either by the client or the broker

b. broker only

The actual amount of money paid for a particular parcel of real estate is said to be that property's a. value b. price c. market value d. settlement value

b. price

Economic controls on the economy in general are enacted by: a. the federal government b. state governments only c. both federal and state governments d. neither federal nor state governments

c. both federal and state governments

The purpose of a state real estate regulatory board is to protect: a. the real estate industry b. home sellers c. home buyers d. the general public

d. the general public

The free enterprise system is an ______ system that operates to ______ and ______ goods and _____ by the free application of the four factors of production: ____, ____. _________ and ________ activity and ability.

economic produce distribute services land labor capital investment entrepreneurial