Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 1 Quiz
Copyright January 2011, Educational Textbook Company
1. Real estate economics deals with the mechanisms:
a. that the government sets.
b. that society creates.
c. that the DRE creates.
d. that society demands.
2. In economics, we are concerned with:
a. consumption of goods and services.
b. production.
c. distribution.
d. all of the above.
3. Real property is:
a. anything permanently attached to the land.
b. furniture in the house.
c. anything removable from the land.
c. anything lying on the property.
4. When the amount a producer supplies increases with price, this is known as:
a. Law of Gravity.
b. Law of Demand.
c. Law of Supply.
d. Law of Price.
5. When supply and demand are not at an equilibrium point, there can be:
a. a shortage.
b. a price reaction.
c. an oversupply.
d. any of the above.
6. Making your development unique and distinct from those of your competitors is
known as:
a. product supply.
b. product differentiation.
c. product uniqueness.
d. product distinction.
7. When you measure the outcome of an economic event as a multiple of the amount of
the initial change, this is known as:
a. dollar multiplier.
b. marginal propensity.
c. manufacturing effect.
d. multiplier effect.
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8. The Law of Diminishing Returns states that at some point, as production increases:
a. the cost of additional units produced will increase.
b. the cost of additional units produced will decrease.
c. profits will increase.
d. production will decrease.
9. Property will go up in value during which stage of a real estate cycle?
a. Decline stage
b. Maturity stage
c. Equilibrium stage
d. Development stage
10. The period in which a structure is worth more than tearing it down is called:
a. economic obsolescence.
b. economic life.
c. direct capitalization.
d. highest and best use period.
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Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 1 Quiz Answers
Copyright January 2011, Educational Textbook Company
1. b (p3)
2. d (p1)
3. a (p4)
4. c (p6)
5. d (p9)
6. b (p10)
7. d (p17)
8. a (p19)
9. d (p22)
10. b (p20)
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