Arec EXAM QUESTIONS WITH ANSWERS,
Exams of Real Estate Management
Economics - ANSWERThe study of how people make choices under
conditions of scarcity and of the results of those choices for society
The scarcity Principle (also called the No-Free-Lunch Principle) -
ANSWERAlthough we have boundless needs and wants, the resources
available to us are limited. So having more of one good thing usually
means having less of another
The Cost-Benefit Principle - ANSWERAn individual (or a form or a
society) should take an action if, and only if, the extra benefits from
taking the action are at least as great as the extra costs
Rational person - ANSWERSomeone with well-defined goals who tried
to fulfill those goals as best he or she can
Economic Surplus - ANSWERThe benefit of taking an action minus its
cost
Opportunity cost - ANSWERThe value of what must be forgone to
undertake an activity
Sunk cost - ANSWERA cost that is beyond recovery at the moment a
decision must be made
,Marginal cost - ANSWERThe increase in total cost that results from
carrying out one additional unit of an activity
Marginal benefit - ANSWERThe increase in total benefit that results
from carrying out one additional unit of an activity
Average cost - ANSWERThe total cost of undertaking n units of an
activity divided by n
Average benefit - ANSWERThe total benefit of undertaking n units of
an activity divided by n
Normative economic principle - ANSWEROne that says how people
should behave
Positive (or descriptive) economic principle - ANSWEROne that
predicts how people will behave
The Incentive Principle - ANSWERA person (or a firm or a society) is
more likely to take an action if its benefit rises, and less likely to take it
if its cost rises. In short, incentive matter
Microeconomics - ANSWERThe study of individual choice under
scarcity and its implications for the behavior of prices and quantities
in individual markets
, Macroeconomics - ANSWERThe study of the performance of national
or national economies and the policies that governments use to try to
improve that performance
The effect of an increase in the vertical intercept - ANSWER
Economic surplus - ANSWERthe benefit of taking an action minus its
cost
The incentive principle - ANSWERa person (or a firm or a society) is
more likely to take an action if its benefit rises, and less likely to take it
if its cost rises
The principle of comparative advantage - ANSWEReveryone does best
when each person (or each country) concentrates on the activity for
which his or her opportunity cost is lowest
The principle of increasing opportunity cost (also called the "low
hanging fruit principle") - ANSWERin expanding the production of any
good, first employ those resources with the lowest opportunity cost,
and only afterward turn to resources with higher opportunity costs
Absolute advantage - ANSWERone person has an absolute advantage
over another if he or she takes fewer hours to perform a task than the
other person
Attainable point - ANSWERany combination of goods that can be
produced using currently available resources
Exams of Real Estate Management
Economics - ANSWERThe study of how people make choices under
conditions of scarcity and of the results of those choices for society
The scarcity Principle (also called the No-Free-Lunch Principle) -
ANSWERAlthough we have boundless needs and wants, the resources
available to us are limited. So having more of one good thing usually
means having less of another
The Cost-Benefit Principle - ANSWERAn individual (or a form or a
society) should take an action if, and only if, the extra benefits from
taking the action are at least as great as the extra costs
Rational person - ANSWERSomeone with well-defined goals who tried
to fulfill those goals as best he or she can
Economic Surplus - ANSWERThe benefit of taking an action minus its
cost
Opportunity cost - ANSWERThe value of what must be forgone to
undertake an activity
Sunk cost - ANSWERA cost that is beyond recovery at the moment a
decision must be made
,Marginal cost - ANSWERThe increase in total cost that results from
carrying out one additional unit of an activity
Marginal benefit - ANSWERThe increase in total benefit that results
from carrying out one additional unit of an activity
Average cost - ANSWERThe total cost of undertaking n units of an
activity divided by n
Average benefit - ANSWERThe total benefit of undertaking n units of
an activity divided by n
Normative economic principle - ANSWEROne that says how people
should behave
Positive (or descriptive) economic principle - ANSWEROne that
predicts how people will behave
The Incentive Principle - ANSWERA person (or a firm or a society) is
more likely to take an action if its benefit rises, and less likely to take it
if its cost rises. In short, incentive matter
Microeconomics - ANSWERThe study of individual choice under
scarcity and its implications for the behavior of prices and quantities
in individual markets
, Macroeconomics - ANSWERThe study of the performance of national
or national economies and the policies that governments use to try to
improve that performance
The effect of an increase in the vertical intercept - ANSWER
Economic surplus - ANSWERthe benefit of taking an action minus its
cost
The incentive principle - ANSWERa person (or a firm or a society) is
more likely to take an action if its benefit rises, and less likely to take it
if its cost rises
The principle of comparative advantage - ANSWEReveryone does best
when each person (or each country) concentrates on the activity for
which his or her opportunity cost is lowest
The principle of increasing opportunity cost (also called the "low
hanging fruit principle") - ANSWERin expanding the production of any
good, first employ those resources with the lowest opportunity cost,
and only afterward turn to resources with higher opportunity costs
Absolute advantage - ANSWERone person has an absolute advantage
over another if he or she takes fewer hours to perform a task than the
other person
Attainable point - ANSWERany combination of goods that can be
produced using currently available resources
