Reference no: EM132494779

Question 1. An alternative to defining the market area by traditional boundaries is to "draw a circle" around the property at some given distance (say 2 miles). Which of the following factors influence the viability of this alternative?

a. Population density

b. Presence of waterways (lakes, rivers)

c. The Local Transportation Network

d. All of the above.

e. None of the above.

Question 2. What might a slow absorption rate for newly constructed apartment buildings indicate?

a. There are other competing buildings that renters prefer.

b. There is a shortage of vacant apartments in the local market.

c. The local market demand exceeds local market supply.

d. All of the above.

e. None of the above.

Question 3. California recently passed a rent control law, primarily intended to limit the price that apartment owners can charge tenants. Both legislators and media reporting on the bill suggest that the policy is intended to "ease the housing crisis" (meaning it is intended to lower rental price and increase the number of affordable units) in California. What does a standard markets model predict this policy will do?

a. Increase Rents, and Reduce the number of units supplied.

b. Decrease Rents, and Increase the number of units supplied.

c. Increase Rents, and Increase the number of units supplied.

d. Decrease Rents, and Reduce the number of units supplied.

e. None of the above.

Question 4. Knowing that the elasticity of housing supply in Chicago is ~0.81 and that the elasticity of housing supply in Portland is ~1.07, what does this tell you about how the same demand shift will change market prices in each location?

a. The demand shift will have more of an impact on the Portland market.

b. The demand shift will have more of an impact on the Chicago market.

c. The demand shift will result in prices increasing more in Portland than it would in Chicago.

d. The demand shift will result in prices increasing more in Chicago than it would in Portland.

e. This information is not relevant for what happens when demand shifts in either city.

Question 5. Which of the following is a reason that a description of the national economy is part of a real estate market analysis?

A: The national economy sets the tone for business decisions

B: The national economy essentially mimics local real estate markets

C: The national economy is an indicator of the need for more space

a. Only A

b. Only B

c. Only C

d. A and B

e. B and C

f. A and C

g. A, B, and C