Ree 3043 Exam Questions With Correct
Answers
Economists suggest that the value of something results from its utility and: - answerScarcity
A branch of economics that extends the basic ideas of the early classical and neoclassical
economists to better understand and predict how humans use space ...
EXAM STUDY MATERIALS July 30, 2024 11:26 AM Ree 3043 Exam Questions With Correct Answers Economists suggest that the value of something results from its utility and: - answer✔✔Scarcity A branch of economics that extends the basic ideas of the early classical and neoclassical economist s to better understand and predict how humans use space is termed: - answer✔✔Urban economics Formals arrangements and associations that members of society make to support fundamental economics and social activities are referred to, in the text as - answer✔✔institutions Marshal contended that in a perfect market, the value of a good - answer✔✔Was equal to its price Commercial mortgages held in portfolios of lenders are generally referred to as - answer✔✔Unsecuritized commercial mortgages Stocks,bonds, and ca sh are generally classified as - answer✔✔Financial assets Real estate in the United States represents approximately what portion of the world's wealth? - answer✔✔15 % Approximately __________ of the wealth of real estate in the U.S Accrues to residential property - answer✔✔75% According to the text, business real estate (excluding farmland) accounts for approximately _____ percent of the total value of real estate in the U.S? - answer✔✔15% The text organized to describe the following five perspectives of re al estate - answer✔✔-
investment, market, valuation, mortgage finance, and legal T/F: Early economists concluded that land, labor, and credit were the resources of society that were combined by entrepreneurs to form useful products - answer✔✔FALSE The reso urces combined to form useful products in society are land, labor, and capital. T/F: Alfred Marshall, an economist, argued that value results from the intersection of supply (cost) and demand (utility). - answer✔✔True EXAM STUDY MATERIALS July 30, 2024 11:26 AM T/F: Urban economics constitutes a branch of economics that focuses on urban problems, especially housing issues. - answer✔✔True T/F The fundamentals of supply and demand explain all aspects about individual and market behavior in valuing space. - answer✔✔FALSE Much behavior is still unexplained due to the role of institutional arrangements, such as laws/ regulations. T/F: In addition to affecting market operations, lease contracts serve to formally identify a property's rent and the intersection of supply and demand - answer✔✔True T/F: Real estate can be classified as both a financial asset and a real asset - answer✔✔True T/F: Consistent with an open economy, most of the land in every state in the U.S. is privately owned. - answer✔✔FALSE There are a few U .S. States that most of the land is owned by the government (Ex. Alaska) T/F: According to the text, real estate represents about one -half of the worlds wealth - answer✔✔True T/F: Commercial real estate constitutes the most valuable component of the U.S re al estate market - answer✔✔False. Homeowners and residential mortgage lenders jointly own majority of U.S Real Estate T/F Commercial real estate owners carry more debt (as a percentage of the total property value) than residential property owners. - answer✔✔false Effective Cost - answer✔✔the true borrowing cost, including the effect of up -front financing costs Capitalization Rate - answer✔✔calculated as expected cash flow in year one divided by the initial acquisition price, it is a measure of the current r elationship between a property's income stream and price internal rate or return - answer✔✔The discount rate which equates the present value of the cash inflows to the present value of the cash outflows Net Present Value - answer✔✔The difference between th e present value of the cash inflows and the present value of the cash outflows Investment Value - answer✔✔the value of the property to a particular investor
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