1
AlBERTA REAL ESTATE FUNDAMENTALS EXAM
QUESTIONS AND ANSWERS 2024/2025 GRADED A+.
In common law what does the term real estate refer to? - (answers)Land and
fixed improvements to the land
In common law what does the term real property refer to? - (answers)Land, fixed
improvements to the land and intangible rights of ownership
Which of the following statements best describes the term "personal property"? -
(answers)A movable item that can be removed from the property without causing
damage to the property
Which industries are self regulated through RECA? - (answers)Real estate,
mortgage brokerages, property management, condominium management
What are the factors of production? - (answers)land, labor, capital,
entrepreneurship
What is the Canadian economy referred to as? - (answers)Mixed Economy of
capitalist & Socialist
What is quantity supplied? - (answers)the amount of a good or service the market
can offer at a certain price
, 2
Define quantity demanded - (answers)The amount of good or service that would
be bought at a certain price
What causes movements and shifts in supply? - (answers)Movements are when a
change in quantity is caused only by a change in price. Shifts occur when there are
changes in influencing factors other than price.
What are the key non price determinants of supply? - (answers)Production costs
and technology
What are the key non price determinants of demand? - (answers)Market size,
consumers disposable income, and consumers tastes/preferences
Describe market equilibrium - (answers)The price at which quantity demanded
equals quantity supplied. the price at which the market clears and there is neither
a shortage nor surplus
Describe market surplus - (answers)Quantity supplied exceeds quantity
demanded
Describe market shortage - (answers)When demand exceeds supply
Describe a market bubble - (answers)Product price becomes grossly inflated
beyond its realistic value primarily due to excessive consumer confidence
, 3
What is GDP? - (answers)the market value of all final goods and services produced
within a country in a given period of time. Includes all consumer, government and
business spending plus exports less imports.
What is GNP? - (answers)the total value of all finished goods produced by a
country's citizens wether physically located in its borders or abroad. GNP does not
include income earned within a country's borders by foreign residents.
Changes in economic activity are generally caused by? - (answers)Seasonal
changes, business cycle, and secular trends
What are the stages of a business cycle? - (answers)Expansion, prosperity, peak,
contraction, recession, trough and recovery
Who is responsible for the Real Estate Act in Alberta? - (answers)Minister of
service Alberta
What happens in the expansion phase of a business cycle? - (answers)Economy
grows
Correct order of phases in a business cycle - (answers)Expansion, prosperity, peak,
contraction, recession, trough, recovery
What are the costs of economic growth? - (answers)Depleted natural resources,
increases inflation, increases environmental impacts
, 4
A commercial building has 4400 square meters of available office space for rent.
By year end, 1200 square meters remains vacant. What is the vacancy rate? -
(answers)27.27
What are the physical characteristics of real estate? - (answers)Unique, fixed,
durable, scarce
The demand for office space is primarily the result of which of the following? -
(answers)Increase employment in the services and financial sector
What are the types of real estate market? - (answers)Balanced, buyers, sellers
Name of market type where supply exceeds demand? - (answers)Buyers market
What are chattels what type of property? - (answers)Personal property
The real estate act is what type of legislation - (answers)Provincial
Who is responsible for the real estate act - (answers)Minister of Service Alberta
Generally speaking, the rules can be described as? - (answers)Standards of
practice for licensees, affect day to day business of licensees, and can be
established and amended by the industry councils
AlBERTA REAL ESTATE FUNDAMENTALS EXAM
QUESTIONS AND ANSWERS 2024/2025 GRADED A+.
In common law what does the term real estate refer to? - (answers)Land and
fixed improvements to the land
In common law what does the term real property refer to? - (answers)Land, fixed
improvements to the land and intangible rights of ownership
Which of the following statements best describes the term "personal property"? -
(answers)A movable item that can be removed from the property without causing
damage to the property
Which industries are self regulated through RECA? - (answers)Real estate,
mortgage brokerages, property management, condominium management
What are the factors of production? - (answers)land, labor, capital,
entrepreneurship
What is the Canadian economy referred to as? - (answers)Mixed Economy of
capitalist & Socialist
What is quantity supplied? - (answers)the amount of a good or service the market
can offer at a certain price
, 2
Define quantity demanded - (answers)The amount of good or service that would
be bought at a certain price
What causes movements and shifts in supply? - (answers)Movements are when a
change in quantity is caused only by a change in price. Shifts occur when there are
changes in influencing factors other than price.
What are the key non price determinants of supply? - (answers)Production costs
and technology
What are the key non price determinants of demand? - (answers)Market size,
consumers disposable income, and consumers tastes/preferences
Describe market equilibrium - (answers)The price at which quantity demanded
equals quantity supplied. the price at which the market clears and there is neither
a shortage nor surplus
Describe market surplus - (answers)Quantity supplied exceeds quantity
demanded
Describe market shortage - (answers)When demand exceeds supply
Describe a market bubble - (answers)Product price becomes grossly inflated
beyond its realistic value primarily due to excessive consumer confidence
, 3
What is GDP? - (answers)the market value of all final goods and services produced
within a country in a given period of time. Includes all consumer, government and
business spending plus exports less imports.
What is GNP? - (answers)the total value of all finished goods produced by a
country's citizens wether physically located in its borders or abroad. GNP does not
include income earned within a country's borders by foreign residents.
Changes in economic activity are generally caused by? - (answers)Seasonal
changes, business cycle, and secular trends
What are the stages of a business cycle? - (answers)Expansion, prosperity, peak,
contraction, recession, trough and recovery
Who is responsible for the Real Estate Act in Alberta? - (answers)Minister of
service Alberta
What happens in the expansion phase of a business cycle? - (answers)Economy
grows
Correct order of phases in a business cycle - (answers)Expansion, prosperity, peak,
contraction, recession, trough, recovery
What are the costs of economic growth? - (answers)Depleted natural resources,
increases inflation, increases environmental impacts
, 4
A commercial building has 4400 square meters of available office space for rent.
By year end, 1200 square meters remains vacant. What is the vacancy rate? -
(answers)27.27
What are the physical characteristics of real estate? - (answers)Unique, fixed,
durable, scarce
The demand for office space is primarily the result of which of the following? -
(answers)Increase employment in the services and financial sector
What are the types of real estate market? - (answers)Balanced, buyers, sellers
Name of market type where supply exceeds demand? - (answers)Buyers market
What are chattels what type of property? - (answers)Personal property
The real estate act is what type of legislation - (answers)Provincial
Who is responsible for the real estate act - (answers)Minister of Service Alberta
Generally speaking, the rules can be described as? - (answers)Standards of
practice for licensees, affect day to day business of licensees, and can be
established and amended by the industry councils
