CA Real Estate Principles Course » 2021 » Section 12 Unit 3 Exam

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Question #1
What economic principle is related to a property’s most profitable use that is both legal and economically feasible?
A.   Highest and best use
B.   Progression
C.   Anticipation
D.   Contribution
Question #2
Which of these terms can be defined as what a buyer has paid for a property and what the seller has accepted?
A.   Cost
B.   Value
C.   Appraisal
D.   Price
Question #3
______ is the principle that the more similar properties there are on the market, the lower the price will be driven.
A.   Conformity
B.   Competition
C.   Plottage
D.   Contribution
Question #4
When prices go down because there are too many homes on the market and too few buyers, what economic principle is at work?
A.   Competition
B.   Conformity
C.   Regression
D.   Progression
Question #5
Marcus bought two adjoining pieces of land that were zoned for commercial use. When he realized that combining the two parcels would dramatically increase the land’s value, he jumped at the opportunity. What’s this an example of?
A.   Zoning
B.   Eminent domain
C.   Plottage
D.   Contribution
Question #6
Another term for a valuation is ______.
A.   Comparative market analysis
B.   Evaluation
C.   Formal appraisal
D.   Assessment
Question #7
Which economic principle pertains to how a change in a property affects its value as a whole?
A.   Contribution
B.   Anticipation
C.   Conformity
D.   Substitution
Question #8
What does Susanna do as an appraiser?
A.   She determines what a buyer may pay for a property.
B.   She's usually hired by the buyer or seller.
C.   She provides an estimate of value that the consumer may influence.
D.   She provides an unbiased estimate of value.

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