The fact that real estate is fixed in location means

Assignment Help Financial Management

Reference no: EM13847163

The questions are multiple choices and true/false. Thank you.

1) The fact that Real Estate is fixed in location means that:

a) Financing is easier.

b) Taxation is easier.

c) Insurance is easier.

d) Both A and B are correct.

e) Both A and C are correct.

f) Both B and C are correct.

2) Which of the following is true about property rights?

a) Some are more important than others.

b) A property owner has the right to build as high as he or she wants

c) They are the same in different states.

d) Conflicts between them can lead to externalities.

3) Which of the following statements about the definition of real estate is true?

a) Personal property can become real estate by permanently affixing it to land.

b) Land and its permanent improvements have to be owned by the same entity.

c) Multiple type of usage of land is impossible, thus you can only build one type of real estate on land.

d) It excludes residential real estate.

4) Which of the following statements about real estate as a merit good is false?

a) Being a merit good means that it has a dual function, namely both investment and that it can be used.

b) Being a merit good means that the valuation is more complicated.

c) Being a merit good means that the use can be suboptimal.

d) Being a merit good means that it needs to be regulated.

5) Which of the following is false about zoning?

a) It enables the government to regulate real estate.

b) No just compensation needs to be paid.

c) It has the same rules and regulation for residential vis-à-vis office real estate.

d) It creates positive externalities.

6) Why is Euclidean zoning permissible?

a) Because the government has to regulate the bundle of property rights.

b) Because it does not affect property right.

c) Because it does not affect a basic property right.

d) Because the government pays just compensation.

7) Which of the following statements about externalities is false?

a) Externalities can be negative or positive.

b) A fixture is an example of an externality.

c) Externalities are not contracted for.

d) Externalities affect the value of real estate.

8) If you lease land under a land lease for 99 years, you

a) cannot transfer your property.

b) cannot get a mortgage on it.

c) have the risk that any improvements made to the land become property of the landowner.

d) Both A and C are correct

9) The price of real estate is not necessarily the same as its value.

(True or False)

10) Eminent domain is used to solve problems associated with negative externalities.

(True or False)

11) Just compensation means that the owner receives the market price of the property.

(True or False)

Reference no: EM13847163

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