REE 3043 Exam 1 UPDATED Exam
Questions and CORRECT Answers
Economists suggest that the value of something results from its utility and: - CORRECT
ANSWER - D. Scarcity
A branch of economics that extends the basic ideas of the early classical and neoclassical
economists to better understand and predict how humans use space is termed: - CORRECT
ANSWER - C. Urban economics
Formal arrangements and associations that members of society make to support fundamental
economic and social activities are referred to, in the text, as: - CORRECT ANSWER - B.
institutions
Marshall contended that in a perfect market, the value of a good - CORRECT ANSWER -
A. was equal to its price
Commercial mortgages held in the portfolios of lenders are generally referred to as: - CORRECT
ANSWER - D. Unsecuritized commercial mortgages
Stocks, bonds, and cash are generally classified as: - CORRECT ANSWER - B. Financial
assets
Real estate in the United States represents approximately what portion of the world's wealth? -
CORRECT ANSWER - A. 15 percent
Approximately _______ of the wealth of real estate in the U.S. accrues to residential property. -
CORRECT ANSWER - D. 75%
According to the text, business real estate (excluding farmland) accounts for approximately ____
percent of the total value of real estate in the U.S? - CORRECT ANSWER - A. 15%
, The text organized to describe the following five perspectives of real estate: - CORRECT
ANSWER - A. investment, market, mortgage finance, and legal
T/F Early economists concluded that land, labor, and credit were the resources of society that
were combined by entrepreneurs to form useful products - CORRECT ANSWER - False
T/F Alfred Marshall, an economist, argued that value results from the intersection of supply
(cost) and demand (utility). - CORRECT ANSWER - True
T/F Urban economics constituted a branch of economics that focuses on urban problems,
especially housing issues. - CORRECT ANSWER - True
T/F The fundamentals of supply and demand explain all aspects about individual and market
behavior in valuing space. - CORRECT ANSWER - False
T/F In addition to affecting market operations, lease contracts serve to formally identify a
property's rent and the intersection of supply and demand - CORRECT ANSWER - True
T/F Real estate can be classified as both a financial asset and a real asset. - CORRECT
ANSWER - True
T/F Consistent with an open economy, most of the land in every state in the U.S. is privately
owned. - CORRECT ANSWER - False
T/F According to the text, real estate represents about one-half of the world's wealth. -
CORRECT ANSWER - true
T/F Commercial real estate constituted the most valuable component of the U.S real estate
market. - CORRECT ANSWER - False
Questions and CORRECT Answers
Economists suggest that the value of something results from its utility and: - CORRECT
ANSWER - D. Scarcity
A branch of economics that extends the basic ideas of the early classical and neoclassical
economists to better understand and predict how humans use space is termed: - CORRECT
ANSWER - C. Urban economics
Formal arrangements and associations that members of society make to support fundamental
economic and social activities are referred to, in the text, as: - CORRECT ANSWER - B.
institutions
Marshall contended that in a perfect market, the value of a good - CORRECT ANSWER -
A. was equal to its price
Commercial mortgages held in the portfolios of lenders are generally referred to as: - CORRECT
ANSWER - D. Unsecuritized commercial mortgages
Stocks, bonds, and cash are generally classified as: - CORRECT ANSWER - B. Financial
assets
Real estate in the United States represents approximately what portion of the world's wealth? -
CORRECT ANSWER - A. 15 percent
Approximately _______ of the wealth of real estate in the U.S. accrues to residential property. -
CORRECT ANSWER - D. 75%
According to the text, business real estate (excluding farmland) accounts for approximately ____
percent of the total value of real estate in the U.S? - CORRECT ANSWER - A. 15%
, The text organized to describe the following five perspectives of real estate: - CORRECT
ANSWER - A. investment, market, mortgage finance, and legal
T/F Early economists concluded that land, labor, and credit were the resources of society that
were combined by entrepreneurs to form useful products - CORRECT ANSWER - False
T/F Alfred Marshall, an economist, argued that value results from the intersection of supply
(cost) and demand (utility). - CORRECT ANSWER - True
T/F Urban economics constituted a branch of economics that focuses on urban problems,
especially housing issues. - CORRECT ANSWER - True
T/F The fundamentals of supply and demand explain all aspects about individual and market
behavior in valuing space. - CORRECT ANSWER - False
T/F In addition to affecting market operations, lease contracts serve to formally identify a
property's rent and the intersection of supply and demand - CORRECT ANSWER - True
T/F Real estate can be classified as both a financial asset and a real asset. - CORRECT
ANSWER - True
T/F Consistent with an open economy, most of the land in every state in the U.S. is privately
owned. - CORRECT ANSWER - False
T/F According to the text, real estate represents about one-half of the world's wealth. -
CORRECT ANSWER - true
T/F Commercial real estate constituted the most valuable component of the U.S real estate
market. - CORRECT ANSWER - False
