Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 2 Bonus Quiz
Copyright January 2011, Educational Textbook Company
1. Which of the following economists is best associated with the policy of Laissez-Faire?
a. Adam Smith
b. Thomas Malthus
c. John Maynard Keynes
d. Ben Bernanke
2. Karl Marx is considered to be the father of:
a. free enterprise.
b. capitalism.
c. mixed capitalism.
d. socialism.
3. If there were only one source to buy what you needed, it would be considered to be:
a. an oligopoly
b. a monopsony.
c. a monopoly.
d. an oligopsony
4. Which of the following is a true statement?
a. Price is the same as value
b. Rent is the return from use
c. Profit equals gross receipts
d. Lower risk investments demand higher profits
5. A growth in consumer leverage should lead to:
a. stagflation.
b. deflation.
c. corporate growth.
d. an increase in the misery index.
6. By adding the unemployment rate to the rate of inflation, you get:
a. M¹.
b. the Federal Cost of Funds rate.
c. the Big Mac Index.
d. the Misery Index.
7. State ownership of the means of production describes:
a. pure capitalism.
b. Laissez-Faire.
c. mixed capitalism.
d. socialism.
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8. He believed that population would increase geometrically to a misery level. He was:
a. Thomas Malthus.
b. Ben Bernanke.
c. Milton Friedman.
d. Alan Greenspan.
9. An economy where decisions are made in the marketplace by individuals competing
for goods would be:
a. a command economy.
b. a demand economy.
c. socialism.
d. microeconomics.
10. Consumers vote with their dollars as to what is produced:
a. in a command economy.
b. under a monopoly.
c. under capitalism.
d. under socialism.
11. Most real estate sales take place under:
a. perfect competition.
b. imperfect competition.
c. a monopoly.
d. a monopsony.
12. Stock prices rising is an indication that the market anticipates economic:
a. recovery.
b. deepening of a recession.
c. depression.
d. inflation.
13. Which of the following would be a recessionary indication?
a. An increase in consumer credit
b. An increase in capital expenditures
c. A decrease in machine tool orders
d. An increase in fiberboard orders
14. The following are positive indicators for the real estate profession, except for:
a. a decrease in the time to sell.
b. a decrease in new building permits.
c. an increase in number of units rented.
d. an increase in number of home sales.
15. The period from December 2007 through 2009 could best be described as a:
a. recession.
b. recovery period.
c. expansionary period.
d. period of wild exuberance.
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Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 2 Bonus Quiz Answers
Copyright January 2011, Educational Textbook Company
1. a (p35)
2. d (p46)
3. c (p50)
4. b (p57)
5. c (p64-65)
6. d (p65)
7. d (p46)
8. a (p40)
9. b (p43)
10. c (p43)
11. b (p51)
12. a (p61)
13. c (p67)
14. b (p70-74)
15. a (p79)
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