RESIDENTIAL MARKET ANALYSIS EXAM
SCRIPT VERIFIED QUESTIONS WITH FULL
SOLUTION
●● "A place where goods and services are exchanged" is the definition
of a:
A. retail district
B. market
C. neighborhood
D. store
Answer: B. market
●● True or False: The appraisal profession has its own fundamental
terminology, just like the medical and legal professions.
Answer: True
●● When an appraiser is analyzing the subject property's market area,
which question is LEAST likely to be asked?
A. Where is the property located?
B. What defines the boundaries of the property's neighborhood?
,C. Who owns the property?
D. What are the trends for this neighborhood?
Answer: C. Who owns the property?
●● A study of the market as a whole, as well as the investigation of
conditions of a component of that market, for a particular type of
property, is the definition of:
A. market value
B. neighborhood
C. market analysis
D. appraisal
Answer: C. market analysis
●● The value of a fair quality home will be enhanced if it is located in a
neighborhood of all good quality homes. What economic principle does
this demonstrate?
A. Substitution
B. Progression
C. Anticipation
D. Regression
Answer: B. Progression
,●● If there are not enough homes available in a market to satisfy
demand, what will happen to home prices?
A. they will increase
B. they will decrease
C. they will stay the same
Answer: A. they will increase
●● Which of these is an example of the principle of progression?
A. Average quality home in average quality neighborhood
B. A manufacturing facility located in a residential neighborhood
C. A good quality home in a neighborhood of average quality homes
D. Fair quality home in a neighborhood of good quality homes
Answer: D. Fair quality home in a neighborhood of good quality homes
●● Which stage of the life cycle does not happen in every neighborhood
or property?
A. Decline
B. Renewal
C. Growth
, D. Stability
Answer: B. Renewal
●● What is another name for the principle of inclining and declining
periods?
A. ups and downs
B. Externalities
C. Anticipation
D. Integration and Disintegration
Answer: D. Integration and Disintegration
●● Generally, which changes more rapidly in a real estate market?
A. Supply
B. Demand
C. Neither; they both change at the same rate
D. There is no relationship
Answer: B. Demand
●● The principle of surplus productivity states that after paying the costs
of the first three agents of production, any residual income is attributed
to ________.
SCRIPT VERIFIED QUESTIONS WITH FULL
SOLUTION
●● "A place where goods and services are exchanged" is the definition
of a:
A. retail district
B. market
C. neighborhood
D. store
Answer: B. market
●● True or False: The appraisal profession has its own fundamental
terminology, just like the medical and legal professions.
Answer: True
●● When an appraiser is analyzing the subject property's market area,
which question is LEAST likely to be asked?
A. Where is the property located?
B. What defines the boundaries of the property's neighborhood?
,C. Who owns the property?
D. What are the trends for this neighborhood?
Answer: C. Who owns the property?
●● A study of the market as a whole, as well as the investigation of
conditions of a component of that market, for a particular type of
property, is the definition of:
A. market value
B. neighborhood
C. market analysis
D. appraisal
Answer: C. market analysis
●● The value of a fair quality home will be enhanced if it is located in a
neighborhood of all good quality homes. What economic principle does
this demonstrate?
A. Substitution
B. Progression
C. Anticipation
D. Regression
Answer: B. Progression
,●● If there are not enough homes available in a market to satisfy
demand, what will happen to home prices?
A. they will increase
B. they will decrease
C. they will stay the same
Answer: A. they will increase
●● Which of these is an example of the principle of progression?
A. Average quality home in average quality neighborhood
B. A manufacturing facility located in a residential neighborhood
C. A good quality home in a neighborhood of average quality homes
D. Fair quality home in a neighborhood of good quality homes
Answer: D. Fair quality home in a neighborhood of good quality homes
●● Which stage of the life cycle does not happen in every neighborhood
or property?
A. Decline
B. Renewal
C. Growth
, D. Stability
Answer: B. Renewal
●● What is another name for the principle of inclining and declining
periods?
A. ups and downs
B. Externalities
C. Anticipation
D. Integration and Disintegration
Answer: D. Integration and Disintegration
●● Generally, which changes more rapidly in a real estate market?
A. Supply
B. Demand
C. Neither; they both change at the same rate
D. There is no relationship
Answer: B. Demand
●● The principle of surplus productivity states that after paying the costs
of the first three agents of production, any residual income is attributed
to ________.
