Alberta Real Estate Fundamentals ACTUAL exam: QUESTION AND
Alberta Real Estate Fundamentals
ANSWERS UPDATED 2025
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1. In common law what does the term real estate Land and fixed improvements to
refer to? the land
2. In common law what does the term real property Land, fixed improvements to the
refer to? land and intangible rights of
ownership
3. Which of the following statements best describes A movable item that can be re-
the term "personal property"? moved from the property with-
out causing damage to the
property
4. Which industries are self regulated through RECA? Real estate, mortgage broker-
ages, property management,
condominium management
5. What are the factors of production? land, labor, capital, entrepre-
neurship
6. What is the Canadian economy referred to as? Mixed Economy of capitalist &
Socialist
7. What is quantity supplied? the amount of a good or service
the market can offer at a certain
price
8. Define quantity demanded The amount of good or service
that would be bought at a cer-
tain price
9. What causes movements and shifts in supply? Movements are when a change
in quantity is caused only by
a change in price. Shifts oc-
, Alberta Real Estate Fundamentals
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cur when there are changes in
influencing factors other than
price.
10. What are the key non price determinants of sup- Production costs and technolo-
ply? gy
11. What are the key non price determinants of de- Market size, consumers dispos-
mand? able income, and consumers
tastes/preferences
12. Describe market equilibrium The price at which quantity de-
manded equals quantity sup-
plied. the price at which the
market clears and there is nei-
ther a shortage nor surplus
13. Describe market surplus Quantity supplied exceeds
quantity demanded
14. Describe market shortage When demand exceeds supply
15. Describe a market bubble Product price becomes grossly
inflated beyond its realistic val-
ue primarily due to excessive
consumer confidence
16. What is GDP? the market value of all final
goods and services produced
within a country in a given pe-
riod of time. Includes all con-
sumer, government and busi-
, Alberta Real Estate Fundamentals
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ness spending plus exports less
imports.
17. What is GNP? the total value of all finished
goods produced by a country's
citizens wether physically locat-
ed in its borders or abroad.
GNP does not include income
earned within a country's bor-
ders by foreign residents.
18. Changes in economic activity are generally caused Seasonal changes, business cy-
by? cle, and secular trends
19. What are the stages of a business cycle? Expansion, prosperity, peak,
contraction, recession, trough
and recovery
20. Who is responsible for the Real Estate Act in Alber- Minister of service Alberta
ta?
21. What happens in the expansion phase of a busi- Economy grows
ness cycle?
22. Correct order of phases in a business cycle Expansion, prosperity, peak,
contraction, recession, trough,
recovery
23. What are the costs of economic growth? Depleted natural resources, in-
creases inflation, increases en-
vironmental impacts
24. A commercial building has 4400 square meters of 27.27
available office space for rent. By year end, 1200
, Alberta Real Estate Fundamentals
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square meters remains vacant. What is the vacan-
cy rate?
25. What are the physical characteristics of real es- Unique, fixed, durable, scarce
tate?
26. The demand for office space is primarily the result Increase employment in the
of which of the following? services and financial sector
27. What are the types of real estate market? Balanced, buyers, sellers
28. Name of market type where supply exceeds de- Buyers market
mand?
29. What are chattels what type of property? Personal property
30. The real estate act is what type of legislation Provincial
31. Who is responsible for the real estate act Minister of Service Alberta
32. Generally speaking, the rules can be described as? Standards of practice for li-
censees, affect day to day busi-
ness of licensees, and can be
established and amended by
the industry councils
33. What are the purposes of RECA Administer the act, set and
enforce standards of con-
duct for the industry and
the businesses of licensees,
protect against/investigate/de-
tect/suppress mortgage fraud,
and to protect consumers af-
fected by the industry
Alberta Real Estate Fundamentals
ANSWERS UPDATED 2025
Study online at https://quizlet.com/_gx1jd3
1. In common law what does the term real estate Land and fixed improvements to
refer to? the land
2. In common law what does the term real property Land, fixed improvements to the
refer to? land and intangible rights of
ownership
3. Which of the following statements best describes A movable item that can be re-
the term "personal property"? moved from the property with-
out causing damage to the
property
4. Which industries are self regulated through RECA? Real estate, mortgage broker-
ages, property management,
condominium management
5. What are the factors of production? land, labor, capital, entrepre-
neurship
6. What is the Canadian economy referred to as? Mixed Economy of capitalist &
Socialist
7. What is quantity supplied? the amount of a good or service
the market can offer at a certain
price
8. Define quantity demanded The amount of good or service
that would be bought at a cer-
tain price
9. What causes movements and shifts in supply? Movements are when a change
in quantity is caused only by
a change in price. Shifts oc-
, Alberta Real Estate Fundamentals
Study online at https://quizlet.com/_gx1jd3
cur when there are changes in
influencing factors other than
price.
10. What are the key non price determinants of sup- Production costs and technolo-
ply? gy
11. What are the key non price determinants of de- Market size, consumers dispos-
mand? able income, and consumers
tastes/preferences
12. Describe market equilibrium The price at which quantity de-
manded equals quantity sup-
plied. the price at which the
market clears and there is nei-
ther a shortage nor surplus
13. Describe market surplus Quantity supplied exceeds
quantity demanded
14. Describe market shortage When demand exceeds supply
15. Describe a market bubble Product price becomes grossly
inflated beyond its realistic val-
ue primarily due to excessive
consumer confidence
16. What is GDP? the market value of all final
goods and services produced
within a country in a given pe-
riod of time. Includes all con-
sumer, government and busi-
, Alberta Real Estate Fundamentals
Study online at https://quizlet.com/_gx1jd3
ness spending plus exports less
imports.
17. What is GNP? the total value of all finished
goods produced by a country's
citizens wether physically locat-
ed in its borders or abroad.
GNP does not include income
earned within a country's bor-
ders by foreign residents.
18. Changes in economic activity are generally caused Seasonal changes, business cy-
by? cle, and secular trends
19. What are the stages of a business cycle? Expansion, prosperity, peak,
contraction, recession, trough
and recovery
20. Who is responsible for the Real Estate Act in Alber- Minister of service Alberta
ta?
21. What happens in the expansion phase of a busi- Economy grows
ness cycle?
22. Correct order of phases in a business cycle Expansion, prosperity, peak,
contraction, recession, trough,
recovery
23. What are the costs of economic growth? Depleted natural resources, in-
creases inflation, increases en-
vironmental impacts
24. A commercial building has 4400 square meters of 27.27
available office space for rent. By year end, 1200
, Alberta Real Estate Fundamentals
Study online at https://quizlet.com/_gx1jd3
square meters remains vacant. What is the vacan-
cy rate?
25. What are the physical characteristics of real es- Unique, fixed, durable, scarce
tate?
26. The demand for office space is primarily the result Increase employment in the
of which of the following? services and financial sector
27. What are the types of real estate market? Balanced, buyers, sellers
28. Name of market type where supply exceeds de- Buyers market
mand?
29. What are chattels what type of property? Personal property
30. The real estate act is what type of legislation Provincial
31. Who is responsible for the real estate act Minister of Service Alberta
32. Generally speaking, the rules can be described as? Standards of practice for li-
censees, affect day to day busi-
ness of licensees, and can be
established and amended by
the industry councils
33. What are the purposes of RECA Administer the act, set and
enforce standards of con-
duct for the industry and
the businesses of licensees,
protect against/investigate/de-
tect/suppress mortgage fraud,
and to protect consumers af-
fected by the industry
