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Basic Appraisal Principles Ch. 16 Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Market analysis - Answer✔the study of the supply and demand in a specific area for a specific
type of property
Real property Market - Answer✔buyers and sellers of particular real estate and the transactions
that occur among them
Market Area - Answer✔a property's markets area from which its demand is found and that
contains its direct competition
Market Area analysis (neighbor hood analysis) - Answer✔analysis of observable and/ or
quantifiable data indicating discernible, patterns of urban growth, structure, and change that
may detract from or enhance property values; focuses on four sets of considerations that
influence value
- social
- economical
- governmental
- environmental factors
Macroeconomics - Answer✔study of the economy as an aggregate system, focusing on
national/domestic production, national/ domestic income, the supply of money, the rate of
inflation, the national budget, the balance of trade, and the interrelationships among them
1|Page
, ©THESTAR 2025 ALL RIGHTS RESERVED 11:44 AM A+
Microeconomics - Answer✔the study of economics of individual spheres of activity or patterns
and behaviors e.g. a firm, an industry, a retail market, local employment, individual property
performance...
submarket - Answer✔a division of a total market that reflects the preferences of a particular
set of buyers and sellers
Market Segmentation - Answer✔the process by which submarkets within a larger market are
identified and analyzed
disaggregation - Answer✔the differentiation of a subject property from other properties on the
basis of subclassifications with differing product characteristics
a subjects property market area would be defined as
a. its neighborhood
b. within 1 mile of the subject in an urban area, and within 10 miles in a rural area
c. the area from where demand comes and that contains its competition
d. the geographic area withing five miles of the property - Answer✔c. the area from where
demand comes and that contains its competition
what process would an appraiser use to identify submarkets within a larger market?
a. highest and best use analysis
b. market analysis
c. macroeconomic analysis
d. market segmentation - Answer✔d. market segmentation
"A process for examining the demand and supply of a property type and the geographic market
area for that property type" is the definition of ____________ analysis.
a. highest and best use
b. microeconomic
c. feasibility
2|Page
Basic Appraisal Principles Ch. 16 Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Market analysis - Answer✔the study of the supply and demand in a specific area for a specific
type of property
Real property Market - Answer✔buyers and sellers of particular real estate and the transactions
that occur among them
Market Area - Answer✔a property's markets area from which its demand is found and that
contains its direct competition
Market Area analysis (neighbor hood analysis) - Answer✔analysis of observable and/ or
quantifiable data indicating discernible, patterns of urban growth, structure, and change that
may detract from or enhance property values; focuses on four sets of considerations that
influence value
- social
- economical
- governmental
- environmental factors
Macroeconomics - Answer✔study of the economy as an aggregate system, focusing on
national/domestic production, national/ domestic income, the supply of money, the rate of
inflation, the national budget, the balance of trade, and the interrelationships among them
1|Page
, ©THESTAR 2025 ALL RIGHTS RESERVED 11:44 AM A+
Microeconomics - Answer✔the study of economics of individual spheres of activity or patterns
and behaviors e.g. a firm, an industry, a retail market, local employment, individual property
performance...
submarket - Answer✔a division of a total market that reflects the preferences of a particular
set of buyers and sellers
Market Segmentation - Answer✔the process by which submarkets within a larger market are
identified and analyzed
disaggregation - Answer✔the differentiation of a subject property from other properties on the
basis of subclassifications with differing product characteristics
a subjects property market area would be defined as
a. its neighborhood
b. within 1 mile of the subject in an urban area, and within 10 miles in a rural area
c. the area from where demand comes and that contains its competition
d. the geographic area withing five miles of the property - Answer✔c. the area from where
demand comes and that contains its competition
what process would an appraiser use to identify submarkets within a larger market?
a. highest and best use analysis
b. market analysis
c. macroeconomic analysis
d. market segmentation - Answer✔d. market segmentation
"A process for examining the demand and supply of a property type and the geographic market
area for that property type" is the definition of ____________ analysis.
a. highest and best use
b. microeconomic
c. feasibility
2|Page
