RE 165 Real Estate Economics Due 5/10/2012
Quiz for Chapter8: Neighborhoods: Clusters of Land Use and Value
1. A cluster of properties of relatively similar land use and value is a:
A. neighborhood
B. location
C. city
D. block
2. The value of a property at a particular location is created by which force?
A. political
B. economic
C. physical
D. all of the above
3. A political factor that causes a neighborhood to change is a(n):
A. earthquake
B. change in lifestyles
C. rezoning
D. new transportation route
4. An economic factor that causes a neighborhood to change is a(n):
A. earthquake
B. change in lifestyles
C. rezoning
D. new transportation route
5. Which of the following can establish neighborhood boundaries?
A. rivers
B. zoning
C. property use
D. all of the above
6. An ideal stable residential neighborhood would have:
A. no turnovers
B. high turnovers
C. reasonable turnovers
D. high percentage of commercial properties
7. All neighborhoods will:
A. decline
B. age
C. stabilize
D. appreciate
8. High turnover, falling prices, and deferred maintenance are signs of which phase in the life cycle of a neighborhood?
A. beginning
B. stabilization
C. deterioration
D. rehabilitation
9. When an attempt is made to save a residential neighborhood from decay, which of the following requires the most money in construction costs?
A. preservation
B. prevention
C. rehabilitation
D. reconciliation
10. A study of changes in city growth patterns, coupled with shifts in neighborhood uses, helps to predict:
A. changes in values of properties located in the neighborhood
B. future appreciation rates
C. good investment opportunities
D. all of the above
11. The reason people say that ‘‘location, location, and location’’ are the three factors that determine property value is:
A. people cannot find property without knowing its location
B. real estate has a fixed location
C. demand for real estate cannot move from place to place
D. buyers typically must choose the particular location, regardless of other property characteristics
12. Proximity to employment is irrelevant in studying neighborhoods.
A. true
B. false
13. Many residential neighborhoods have boundaries that are defined.
A. very clearly
B. vaguely
C. by deed restrictions
D. by topography
14. Residential neighborhoods are typically considered to contain about 1,000 households:
A. true
B. false
15. Compared to the boundaries of residential neighborhoods, commercial neighborhood boundaries are:
A. typically more precise
B. typically much less precise
C. more likely to be set by physical features
D. much more influenced by social issues
16. The exact same home, built at three different locations in the same subdivision, will always have the same value.
A. true
B. false
17. A physical force that causes real estate values in a neighborhood to change is:
A. population trends
B. weather and the elements
C. lifestyle changes
D. business cycles
18. The greatest influence for neighborhood change usually comes primarily from:
A. national trends
B. regional factors
C. local factors
D. physical changes
19. Preservation refers to:
A. maintaining a neighborhood
B. rebuilding a neighborhood
C. demolishing a neighborhood
D. investing in a neighborhood
20. Neighborhood changes appear first at the:
A. end of the neighborhood life cycle
B. center of the neighborhood
C. edge of the neighborhood
D. recovery stage
21. The first phase of a neighborhood life cycle is:
A. stability
B. development
C. decline
D. rebirth
22. Assuming no redevelopment, the last phase of a neighborhood life cycle is:
A. stability
B. decline and/or slum
C. steady maturity
D. increasing values
23. Neighborhood change is usually:
A. welcomed by all residents
B. occurring in some manner at all times
C. accomplished swiftly
D. not reflected in property values
24. The value of a particular parcel of real estate is most influenced by:
A. national trends
B. state trends
C. city trends
D. neighborhood trends
25. The main reason real estate investors should take the time to study neighborhood trends is the impact these trends have on future cash flows and property values.
A. true
B. false