REE 3043 EXAM 1 CURCIO EXAM 2026
COMPLETE 400 QUESTIONS AND CORRECT DETAILED ANSWERS
QUESTION 1: The gravity that draws economic activity into clusters is:
Correct Answer: demand for access or proximity
Rationale: Economic activity clusters form because firms and individuals seek to minimize
transportation costs and maximize accessibility to customers, suppliers, and labor. The "gravity"
metaphor reflects how proximity to markets, resources, and infrastructure attracts businesses
to locate near one another, creating agglomeration economies. This is a foundational concept in
urban economics and location theory.
QUESTION 2: The best example of a base economic activity would be a:
Correct Answer: regional sales office
Rationale: Base economic activities are those that bring money into a local economy from
outside the region. A regional sales office serves customers and generates revenue from beyond
the local area, making it a classic example of a base activity. This contrasts with non-base
(service) activities that primarily serve local residents and recycle money within the community.
QUESTION 3: In a system of bid-rent curves, assuming that the households are identical except
for the feature noted, which of these prospective bidders will bid successfully for the sites
nearest to the CBD?
Correct Answer: Households with the greatest number of commuting workers
Rationale: Bid-rent theory explains that households bid more for land closer to the Central
Business District (CBD) because they save on commuting costs. Households with more
commuting workers have higher transportation costs to save, so they can bid more for central
locations. The household that values proximity most (through avoided commuting costs) will
outbid others for the most accessible sites.
,QUESTION 4: Rochester, Minnesota is home to the Mayo Clinic. People travel from all over the
world to be treated at the Mayo Clinic because of its renowned reputation. Some people stay
for weeks at a time with large groups of family and friends by their side. All these people spend
money on hotels, food and other things, locally. The hospital is an example of:
Correct Answer: an economic base multiplier
Rationale: The Mayo Clinic serves as a base economic activity because it brings external dollars
into Rochester. The spending by patients and visitors on local hotels, restaurants, and other
services creates a multiplier effect—each dollar of base income generates additional local
economic activity as it circulates through the community. This demonstrates how base
industries drive local economic growth.
QUESTION 5: In the past, each of the following has been a reason why cities developed EXCEPT:
Correct Answer: The availability of top entertainers
Rationale: Historically, cities developed due to factors such as transportation hubs, natural
resources, defensive positions, trade routes, and agricultural surplus. While entertainment and
cultural amenities may attract people to existing cities, they have not been primary drivers of
initial city formation. The availability of top entertainers is a consequence of urban
development, not a cause.
QUESTION 6: The set of activities that a city provides for the world beyond its boundaries is
called:
Correct Answer: Economic Base
Rationale: The economic base of a city consists of all activities that produce goods and services
exported outside the local area. These activities bring new money into the community and form
the foundation upon which local service activities depend. Understanding a city's economic
base is essential for analyzing its growth potential and vulnerability to external shocks.
QUESTION 7: The bid-rent curve is influenced by various factors but NOT:
Correct Answer: male vs. female commuters
Rationale: Bid-rent curves are shaped by factors such as transportation costs, income levels,
preferences for space, and accessibility to employment centers. Gender of commuters is not a
relevant economic factor in determining land rent gradients. While commuting patterns may
,differ by gender in some contexts, the bid-rent model treats households as economic units
without differentiating by gender.
QUESTION 8: Calculate the location quotient for the healthcare industry of a certain city given
the following facts: Total % of city population working in healthcare is: 30%; Total % of U.S.
population working in healthcare is: 15%.
Correct Answer: 2
Rationale: The location quotient (LQ) is calculated as: LQ = (Local employment share in industry)
/ (National employment share in industry). Here, LQ = 30% / 15% = 2. An LQ greater than 1
indicates that the city has a higher concentration of healthcare employment than the national
average, suggesting the city exports healthcare services (a base activity). An LQ of 2 means the
city has twice the concentration of healthcare workers compared to the nation.
QUESTION 9: What is the main determinant of the hierarchy of central place patterns?
Correct Answer: Population required for market
Rationale: Central place theory, developed by Christaller, explains the size and distribution of
settlements. The hierarchy of central places (from hamlets to regional capitals) is determined by
the threshold population—the minimum number of customers needed to support a particular
good or service. Higher-order goods (e.g., hospitals, universities) require larger populations to
be profitable, so they are found in larger, more widely spaced centers.
QUESTION 10: Which type of ownership combines estate in severalty and tenancy in common?
Correct Answer: Condominium
Rationale: A condominium ownership structure combines two forms of property interests: the
individual unit owner holds fee simple title (estate in severalty) to their specific unit, while all
unit owners share undivided interests (tenancy in common) in the common areas such as
hallways, elevators, and recreational facilities. This hybrid structure allows for individual
ownership while maintaining shared responsibility for common property.
QUESTION 11: Charles is 75 years old and has no heirs. While meeting with his lawyer about
some estate planning issues, the lawyer suggests that Charles donate his current home to his
church under condition that he be allowed to live there for the rest of his life. This is an example
of what type of ownership?
, Correct Answer: Ordinary life estate with remainder interest
Rationale: This arrangement creates a life estate: Charles retains the right to possess and use
the property for his lifetime (the life tenant), while the church holds a remainder interest—the
right to full ownership after Charles's death. This is a classic "ordinary life estate" because it is
not contingent on any condition other than Charles's life. The life tenant has rights to use the
property but cannot transfer greater rights than they possess.
QUESTION 12: Jeff owns 150 acres between a highway and a public beach. The state would like
to build a road directly from the highway to the beach across Jeff's property. The space for this
road would be considered:
Correct Answer: An easement in gross
Rationale: An easement in gross benefits a specific individual or entity (in this case, the state
government) rather than benefiting another parcel of land. The state's right to build and
maintain a road across Jeff's property is a nonpossessory interest that does not attach to any
dominant tenement. Unlike an easement appurtenant (which benefits an adjacent property), an
easement in gross has no dominant estate and exists independently.
QUESTION 13: Wording in a deed such as "does hereby grant, bargain, sell and convey unto ..."
would satisfy the required element of:
Correct Answer: words of conveyance
Rationale: For a deed to be valid, it must contain words of conveyance—specific language that
clearly demonstrates the grantor's intent to transfer title to the grantee. Phrases like "grant,
bargain, sell and convey" are traditional words of conveyance that satisfy this legal requirement.
These words distinguish a deed from other documents that may transfer property interests
(such as contracts or wills).
QUESTION 14: A seller can meet the requirement for "evidence of title" by:
Correct Answer: Providing a title abstract with attorney's opinion
Rationale: Evidence of title demonstrates that the seller has marketable title to convey. A title
abstract is a historical summary of all recorded documents affecting the property, and when
combined with an attorney's opinion on the validity and marketability of the title, it constitutes
acceptable evidence of title. Other methods include title insurance commitments or a Torrens
COMPLETE 400 QUESTIONS AND CORRECT DETAILED ANSWERS
QUESTION 1: The gravity that draws economic activity into clusters is:
Correct Answer: demand for access or proximity
Rationale: Economic activity clusters form because firms and individuals seek to minimize
transportation costs and maximize accessibility to customers, suppliers, and labor. The "gravity"
metaphor reflects how proximity to markets, resources, and infrastructure attracts businesses
to locate near one another, creating agglomeration economies. This is a foundational concept in
urban economics and location theory.
QUESTION 2: The best example of a base economic activity would be a:
Correct Answer: regional sales office
Rationale: Base economic activities are those that bring money into a local economy from
outside the region. A regional sales office serves customers and generates revenue from beyond
the local area, making it a classic example of a base activity. This contrasts with non-base
(service) activities that primarily serve local residents and recycle money within the community.
QUESTION 3: In a system of bid-rent curves, assuming that the households are identical except
for the feature noted, which of these prospective bidders will bid successfully for the sites
nearest to the CBD?
Correct Answer: Households with the greatest number of commuting workers
Rationale: Bid-rent theory explains that households bid more for land closer to the Central
Business District (CBD) because they save on commuting costs. Households with more
commuting workers have higher transportation costs to save, so they can bid more for central
locations. The household that values proximity most (through avoided commuting costs) will
outbid others for the most accessible sites.
,QUESTION 4: Rochester, Minnesota is home to the Mayo Clinic. People travel from all over the
world to be treated at the Mayo Clinic because of its renowned reputation. Some people stay
for weeks at a time with large groups of family and friends by their side. All these people spend
money on hotels, food and other things, locally. The hospital is an example of:
Correct Answer: an economic base multiplier
Rationale: The Mayo Clinic serves as a base economic activity because it brings external dollars
into Rochester. The spending by patients and visitors on local hotels, restaurants, and other
services creates a multiplier effect—each dollar of base income generates additional local
economic activity as it circulates through the community. This demonstrates how base
industries drive local economic growth.
QUESTION 5: In the past, each of the following has been a reason why cities developed EXCEPT:
Correct Answer: The availability of top entertainers
Rationale: Historically, cities developed due to factors such as transportation hubs, natural
resources, defensive positions, trade routes, and agricultural surplus. While entertainment and
cultural amenities may attract people to existing cities, they have not been primary drivers of
initial city formation. The availability of top entertainers is a consequence of urban
development, not a cause.
QUESTION 6: The set of activities that a city provides for the world beyond its boundaries is
called:
Correct Answer: Economic Base
Rationale: The economic base of a city consists of all activities that produce goods and services
exported outside the local area. These activities bring new money into the community and form
the foundation upon which local service activities depend. Understanding a city's economic
base is essential for analyzing its growth potential and vulnerability to external shocks.
QUESTION 7: The bid-rent curve is influenced by various factors but NOT:
Correct Answer: male vs. female commuters
Rationale: Bid-rent curves are shaped by factors such as transportation costs, income levels,
preferences for space, and accessibility to employment centers. Gender of commuters is not a
relevant economic factor in determining land rent gradients. While commuting patterns may
,differ by gender in some contexts, the bid-rent model treats households as economic units
without differentiating by gender.
QUESTION 8: Calculate the location quotient for the healthcare industry of a certain city given
the following facts: Total % of city population working in healthcare is: 30%; Total % of U.S.
population working in healthcare is: 15%.
Correct Answer: 2
Rationale: The location quotient (LQ) is calculated as: LQ = (Local employment share in industry)
/ (National employment share in industry). Here, LQ = 30% / 15% = 2. An LQ greater than 1
indicates that the city has a higher concentration of healthcare employment than the national
average, suggesting the city exports healthcare services (a base activity). An LQ of 2 means the
city has twice the concentration of healthcare workers compared to the nation.
QUESTION 9: What is the main determinant of the hierarchy of central place patterns?
Correct Answer: Population required for market
Rationale: Central place theory, developed by Christaller, explains the size and distribution of
settlements. The hierarchy of central places (from hamlets to regional capitals) is determined by
the threshold population—the minimum number of customers needed to support a particular
good or service. Higher-order goods (e.g., hospitals, universities) require larger populations to
be profitable, so they are found in larger, more widely spaced centers.
QUESTION 10: Which type of ownership combines estate in severalty and tenancy in common?
Correct Answer: Condominium
Rationale: A condominium ownership structure combines two forms of property interests: the
individual unit owner holds fee simple title (estate in severalty) to their specific unit, while all
unit owners share undivided interests (tenancy in common) in the common areas such as
hallways, elevators, and recreational facilities. This hybrid structure allows for individual
ownership while maintaining shared responsibility for common property.
QUESTION 11: Charles is 75 years old and has no heirs. While meeting with his lawyer about
some estate planning issues, the lawyer suggests that Charles donate his current home to his
church under condition that he be allowed to live there for the rest of his life. This is an example
of what type of ownership?
, Correct Answer: Ordinary life estate with remainder interest
Rationale: This arrangement creates a life estate: Charles retains the right to possess and use
the property for his lifetime (the life tenant), while the church holds a remainder interest—the
right to full ownership after Charles's death. This is a classic "ordinary life estate" because it is
not contingent on any condition other than Charles's life. The life tenant has rights to use the
property but cannot transfer greater rights than they possess.
QUESTION 12: Jeff owns 150 acres between a highway and a public beach. The state would like
to build a road directly from the highway to the beach across Jeff's property. The space for this
road would be considered:
Correct Answer: An easement in gross
Rationale: An easement in gross benefits a specific individual or entity (in this case, the state
government) rather than benefiting another parcel of land. The state's right to build and
maintain a road across Jeff's property is a nonpossessory interest that does not attach to any
dominant tenement. Unlike an easement appurtenant (which benefits an adjacent property), an
easement in gross has no dominant estate and exists independently.
QUESTION 13: Wording in a deed such as "does hereby grant, bargain, sell and convey unto ..."
would satisfy the required element of:
Correct Answer: words of conveyance
Rationale: For a deed to be valid, it must contain words of conveyance—specific language that
clearly demonstrates the grantor's intent to transfer title to the grantee. Phrases like "grant,
bargain, sell and convey" are traditional words of conveyance that satisfy this legal requirement.
These words distinguish a deed from other documents that may transfer property interests
(such as contracts or wills).
QUESTION 14: A seller can meet the requirement for "evidence of title" by:
Correct Answer: Providing a title abstract with attorney's opinion
Rationale: Evidence of title demonstrates that the seller has marketable title to convey. A title
abstract is a historical summary of all recorded documents affecting the property, and when
combined with an attorney's opinion on the validity and marketability of the title, it constitutes
acceptable evidence of title. Other methods include title insurance commitments or a Torrens
