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20 Cards in this Set

  • Front
  • Back
All of the following would affect supply EXCEPT

a. population
b. construction costs
c. government controls
d. the labor force
a. population
All of the following are categories of the uses of real property EXCEPT

a. residential
b. developmental
c. agricultural
d. industrial
b. developmental
All of the following wound affect demand EXCEPT

a. population
b. demographics
c. wage levels
d. fiscal policy
d. fiscal policy
All of the following affect how quickly the forces of supply and demand work EXCEPT the

a. degree of standardization of the product
b. mobility of the product
c. degree of standardization of the product’s price
d. mobility of the parties to the transaction
c. degree of standardization of the product’s price
The point at which supply and demand are equal is known as

a. highest and best use
b. balance
c. conformity
d. equilibrium
d. equilibrium
When the supply of a commodity decreases

a. prices tend to rise
b. prices tend to drop
c. demand tends to rise
d. demand tends to drop
a. prices tend to rise
In addition to the affordability of a home, what is primary consideration in the selection of a property?

a. Construction specifications
b. The age of the improvements
c. The location of the property
d. The landscaping and exterior
c. The location of the property
The real cost of owning a home includes certain costs or expenses that many people overlook. All of the following are such costs or expenses EXCEPT

a. the income lost on cash invested in the home
b. the interest paid on borrowed capital
c. maintenance and repair expenses
d. personal property taxes
d. personal property taxes
M listed her property for sale at $100,000. If her cost was 80 percent of the list price, what will her profit be if it sells for $100,000?

a. 10 percent
b. 15 percent
c. 20 percent
d. 25 percent
d. 25 percent
Most homeowner’s insurance policies contain which of the following clauses?

a. a property improvement clause
b. a coin insurance clause
c. a co-ownership clause
d. a property devaluation clause
c. a co-ownership clause
When preparing his annual income tax return, the homeowner may be able to deduct all of the following EXCEPT

a. real estate taxes
b. mortgage interest on a first home
c. mortgage interest on a second home
d. mortgage interest on a third home
d. mortgage interest on a third home
In the event that a homeowner’s insurance policy provides coverage for less than 80 percent of the full replacement cost of the dwelling, then the loss of the residence will be settled for

a. the market value of the property less the land value
b. the lowest repaid bid
c. either the actual cash value or the prorated repair cost
d. the total replacement cost
c. either the actual cash value or the prorated repair cost
The Ls sold their vacation home for $88,000. If they made a profit of 10 percent, what was the original cost of the property?

a. $61,000
b. $79,000
c. $79,200
d. $80,000
d. $80,000
The desirability of the location of a residence would be influenced by all of the following EXCEPT

a. retirement prospects (prospects is a forecast prediction)
b. employment opportunities
c. social services
d. cultural advantages
a. retirement prospects (prospects is a forecast prediction)
a basic homeowner’s insurance policy would protect against all of the following EXCEPT

a. fire and lightening
b. earthquake and volcanic action
c. windstorm and hail
d. water damage
b. earthquake and volcanic action
Federal income tax regulations allow a homeowner to reduce his or her taxable income by amounts paid for

a. repairs and maintenance
b. hazard insurance premiums
c. real estate taxes
d. principle and interest
c. real estate taxes
A longer mortgage loan term will

a. decrease the number of loans being maid
b. result in lower monthly mortgage payments
c. prevent many individuals from owning homes
d. cause interest rates to increase
b. result in lower monthly mortgage payments
A homeowner who wished coverage greater than that provided by a basic insurance policy may choose a broad-form-policy for coverage of which of the following additional perils?

a. flood or earthquake
b. war or nuclear explosion
c. falling objects
d. volcanic eruption
c. falling objects
Mr. And Mrs. H have been living in their condominium at the shore for the past 3 years and leasing to a tenant the house that they bought 25 years ago. When they sell their house, how much of the capital gain will be taxable?

a. 0 percent
b. 40 percent
c. 50 percent
d. 100 percent
d. 100 percent
The value that an owner has in the property that exceeds the amount of the mortgage debt is called

a. equality
b. escrow
c. surplus
d. equity
d. equity