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PERRY REAL ESTATE COLLEGE FINAL EXAM NEWEST
2026 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT ANSWERS |ALREADY GRADED A+
A market tends toward a state of equilibrium in which supply equals
demand, and price, cost, and value are identical. According to this
principle, market demand moves to meet supply, and supply moves to
meet demand. If there is an extreme shortage of an item for which
there is normally a strong demand, suppliers will rush to increase
production to close the gap. If inventories of an item are very high,
suppliers will stop production until the oversupply has been depleted.
6.3 As an economic product, real estate is distinguished by
a. its homogeneity.
b. its variety.
c. the uniqueness of every parcel.
d. its ability to appreciate in value. ......ANSWER......6.3 (c) the
uniqueness of every parcel.
In comparison with other economic products and services, real estate
has certain unique traits. Traits of real estate include: inherent product
value; uniqueness of every property; demand must come to the supply;
illiquidity; slow to respond to changes; and a decentralized local market.
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6.4 The city of Stevensville has declared a moratorium on new
construction. If demand is increasing, what will be the likely effect on
real estate prices in the area?
a. Prices level off.
b. Prices continue to follow the trend that preceded the moratorium.
c. Prices fall.
d. Prices rise. ......ANSWER......6.4 (d) Prices rise.
If demand is increasing and a moratorium slows supply, demand will
begin to outpace supply, forcing prices to rise as the product becomes
scarcer in relation to demand.
6.5 If Okapi, Inc., a company that markets its sports clothing worldwide,
moves into Stevensville and hires 100 employees, it is reasonable to
expect that the town will experience
a. an immediate rise in the demand for industrial real estate, but no
other changes in the real estate market.
b. an increase in demand for all types of real estate.
c. a housing boom, but no other changes in the real estate market.
d. an immediate increase in the prices for industrial and office real
estate, but no impact on the
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residential market. ......ANSWER......6.5 (b) an increase in demand for all
types of real estate.
New businesses will arise to support the new company. They will hire
new employees, some from out of town. The new employees will need
housing. Hence the demand for residential real estate, as well as for
commercial and industrial, will intensify, and it will also stimulate new
construction.
6.6 What is "absorption?"
a. The amount of new space that is added to available space over a
period of time.
b. The number of houses that are built over a period of time.
c. The amount of space that is occupied at any given time.
d. The number of available units that become occupied over a period
of time. ......ANSWER......6.6 (d) The number of available units that
become occupied over a period of time.
Absorption is the amount of available property that becomes occupied
over a period of time.
6.7 When vacancies are declining in a real estate market, it is common
for the market to experience
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a. rising prices.
b. falling prices.
c. falling construction activity.
d. falling absorption. ......ANSWER......6.7 (a) rising prices.
Within the business cycle of real estate, declining vacancy indicates a
combination of increasing demand which "fills up" supply which in turn
decreases. As space becomes scarcer, rents for available space increase.
6.8 The price for any product is a function of four fundamental
determinants of value. These are
a. durability, feasibility, mobility, and location.
b. desire, utility, scarcity, and purchasing power.
c. popularity, recognizability, promotion, and rebate.
d. fungibility, costs, convenience, and uniqueness. ......ANSWER......6.8
(b) desire, utility, scarcity, and purchasing power.
The value of something is based on the answers to four questions: how
much do I desire it; how useful is it; how scarce is it; and am I able to
pay for it.
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PERRY REAL ESTATE COLLEGE FINAL EXAM NEWEST
2026 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT ANSWERS |ALREADY GRADED A+
A market tends toward a state of equilibrium in which supply equals
demand, and price, cost, and value are identical. According to this
principle, market demand moves to meet supply, and supply moves to
meet demand. If there is an extreme shortage of an item for which
there is normally a strong demand, suppliers will rush to increase
production to close the gap. If inventories of an item are very high,
suppliers will stop production until the oversupply has been depleted.
6.3 As an economic product, real estate is distinguished by
a. its homogeneity.
b. its variety.
c. the uniqueness of every parcel.
d. its ability to appreciate in value. ......ANSWER......6.3 (c) the
uniqueness of every parcel.
In comparison with other economic products and services, real estate
has certain unique traits. Traits of real estate include: inherent product
value; uniqueness of every property; demand must come to the supply;
illiquidity; slow to respond to changes; and a decentralized local market.
pg. 1
,2|Page
6.4 The city of Stevensville has declared a moratorium on new
construction. If demand is increasing, what will be the likely effect on
real estate prices in the area?
a. Prices level off.
b. Prices continue to follow the trend that preceded the moratorium.
c. Prices fall.
d. Prices rise. ......ANSWER......6.4 (d) Prices rise.
If demand is increasing and a moratorium slows supply, demand will
begin to outpace supply, forcing prices to rise as the product becomes
scarcer in relation to demand.
6.5 If Okapi, Inc., a company that markets its sports clothing worldwide,
moves into Stevensville and hires 100 employees, it is reasonable to
expect that the town will experience
a. an immediate rise in the demand for industrial real estate, but no
other changes in the real estate market.
b. an increase in demand for all types of real estate.
c. a housing boom, but no other changes in the real estate market.
d. an immediate increase in the prices for industrial and office real
estate, but no impact on the
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residential market. ......ANSWER......6.5 (b) an increase in demand for all
types of real estate.
New businesses will arise to support the new company. They will hire
new employees, some from out of town. The new employees will need
housing. Hence the demand for residential real estate, as well as for
commercial and industrial, will intensify, and it will also stimulate new
construction.
6.6 What is "absorption?"
a. The amount of new space that is added to available space over a
period of time.
b. The number of houses that are built over a period of time.
c. The amount of space that is occupied at any given time.
d. The number of available units that become occupied over a period
of time. ......ANSWER......6.6 (d) The number of available units that
become occupied over a period of time.
Absorption is the amount of available property that becomes occupied
over a period of time.
6.7 When vacancies are declining in a real estate market, it is common
for the market to experience
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a. rising prices.
b. falling prices.
c. falling construction activity.
d. falling absorption. ......ANSWER......6.7 (a) rising prices.
Within the business cycle of real estate, declining vacancy indicates a
combination of increasing demand which "fills up" supply which in turn
decreases. As space becomes scarcer, rents for available space increase.
6.8 The price for any product is a function of four fundamental
determinants of value. These are
a. durability, feasibility, mobility, and location.
b. desire, utility, scarcity, and purchasing power.
c. popularity, recognizability, promotion, and rebate.
d. fungibility, costs, convenience, and uniqueness. ......ANSWER......6.8
(b) desire, utility, scarcity, and purchasing power.
The value of something is based on the answers to four questions: how
much do I desire it; how useful is it; how scarce is it; and am I able to
pay for it.
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