Essentials Of Real Estate Economics
Midterm Exam - Chapters 1 - 8
1. Economics is a social science that is concerned with how individuals and societies
choose to use scarce _______________.
(a) employment
(b) output
(c) resources
(d) income
2. In general, the demand for goods and services frequently exceeds the supply.
(a) True
(b) False
3. Macroeconomics is the study of the economics of individual businesses and
households:
(a) true
(b) false
4. Real estate economics draws __________ form both general economics and real
estate practice:
(a) conclusions
(b) principles
(c) data
(d) findings
5. Economists may offer suggestions for change and may forecast trends:
(a) true
(b) false
6. Real estate economics is not important on a day-to-day basis:
(a) true
(b) false
7. Real estate economics does not specifically address real estate values:
(a) true
(b) false
8. Economics is a(n) _______ science.
(a) familiar
(b) exact
(c) precise
(d) inexact
© Cengage Learning 1
, 9. In economics, the saying “There is no free lunch” refers to the fact that every
choice we make has a(n)
(a) opportunity
(b) limit
(c) cost
(d) reason
10. According to the theory of capitalism, goods and services will go to those who
have something of value to _________:
(a) develop
(b) implement
(c) exchange
(d) none of the above
11. Changing circumstance may change demand, causing a(n) __________________
in the number of available buyers.
(a) increase
(b) decrease
(c) willingness
(d) increase or decrease
12. Laissez-faire means hands-on:
(a) true
(b) false
13. The profit motive includes taking risks:
(a) true
(b) false
14. If consumers favor smaller cars over large SUVs, demand for SUVs will ______.
(a) increase
(b) decrease
(c) increase or decrease
(d) remain the same
15. If the number of buyers for homes in a neighborhood is the same as the number of
sellers, then the market is ________.
(a) competitive
(b) an advantage for sellers
(c) an advantage for buyers
(d) at an equilibrium point
© Cengage Learning 2
Midterm Exam - Chapters 1 - 8
1. Economics is a social science that is concerned with how individuals and societies
choose to use scarce _______________.
(a) employment
(b) output
(c) resources
(d) income
2. In general, the demand for goods and services frequently exceeds the supply.
(a) True
(b) False
3. Macroeconomics is the study of the economics of individual businesses and
households:
(a) true
(b) false
4. Real estate economics draws __________ form both general economics and real
estate practice:
(a) conclusions
(b) principles
(c) data
(d) findings
5. Economists may offer suggestions for change and may forecast trends:
(a) true
(b) false
6. Real estate economics is not important on a day-to-day basis:
(a) true
(b) false
7. Real estate economics does not specifically address real estate values:
(a) true
(b) false
8. Economics is a(n) _______ science.
(a) familiar
(b) exact
(c) precise
(d) inexact
© Cengage Learning 1
, 9. In economics, the saying “There is no free lunch” refers to the fact that every
choice we make has a(n)
(a) opportunity
(b) limit
(c) cost
(d) reason
10. According to the theory of capitalism, goods and services will go to those who
have something of value to _________:
(a) develop
(b) implement
(c) exchange
(d) none of the above
11. Changing circumstance may change demand, causing a(n) __________________
in the number of available buyers.
(a) increase
(b) decrease
(c) willingness
(d) increase or decrease
12. Laissez-faire means hands-on:
(a) true
(b) false
13. The profit motive includes taking risks:
(a) true
(b) false
14. If consumers favor smaller cars over large SUVs, demand for SUVs will ______.
(a) increase
(b) decrease
(c) increase or decrease
(d) remain the same
15. If the number of buyers for homes in a neighborhood is the same as the number of
sellers, then the market is ________.
(a) competitive
(b) an advantage for sellers
(c) an advantage for buyers
(d) at an equilibrium point
© Cengage Learning 2
