Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 8 Quiz
Copyright January 2011, Educational Textbook Company
1. When a seller sells a property and later identifies a property he wishes to obtain in an
exchange, this is commonly called a:
a. delayed decision.
b. delayed exchange.
c. property decision.
d. none of the above.
2. Tax credits became a part of the tax law:
a. as an incentive for private development of low-income housing.
b. to encourage shopping center development.
c. to benefit city governments.
d. none of the above.
3. The Revenue Reconciliation Act of 1993 reinstated a:
a. 20% capital gains rate.
b. 18% capital gains rate.
c. 28% capital gains rate.
d. 32% capital gains rate.
4. The government encourages homeownership by allowing which of the following
expenses to be deductible on the federal and state income taxes?
a. Car purchases
b. Property taxes
c. Interest expenses
d. Both b & c
5. A method of computing depreciation for income tax purposes in yearly equal
installments over the life of a building is known as:
a. yearly depreciation.
b. straight-line depreciation.
c. building depreciation.
d. straight building depreciation.
6. Development rights are:
a. legal rights to build upon a property.
b. legal rights to tax a development.
c. legal rights to grow agricultural crops.
d. legal rights to develop a new business.
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7. How many states have passed legislation prohibiting rent control?
a. 12
b. 9
c. 15
d. 35
8. Which of the following are HUD provided subsidies?
a. Project-based
b. Homeowner-based
c. Tenant-based
d. Both a & c
9. Public housing is:
a. residential housing owned by a government agency.
b. rented to the poor.
c. not originally intended to be a permanent government program.
d. all of the above.
10. The authority of any governmental agency to enact legislation for the health, safety,
and general welfare of the public is known as:
a. policing.
b. police power.
c. authoritative power.
d. police action.
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Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 8 Quiz Answers
Copyright January 2011, Educational Textbook Company
1. b (p284)
2. a (p282)
3. c (p281)
4. d (p279)
5. b (p280)
6. a (p277)
7. c (p269)
8. d (p266)
9. d (p262)
10. b (p256)
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