Question 1

Real estate markets do not meet any of the criteria of a perfect market.

Accepted Answer

Real estate markets do not meet any of the criteria of a perfect market due to factors such as high barriers to entry, imperfect information, and the influence of external factors such as government policies and economic conditions.

Question 2

The neighborhood cycle is noted by development, stability, decline, and renaissance&#10;or renewal.

Accepted Answer

This is correct. The neighborhood cycle typically follows a pattern of development, stability, decline, and renewal or renaissance.

Question 3

The sales price chart shown below suggests an average monthly increase of about one percent for the area under study.
Month Average Price
April $170,000
May $171,700
June $173,500
July $174,000
August $176,000
September $178,750
October $180,500

True

Accepted Answer

The data shows a consistent increase in average price from April to October, with each month's price being approximately 1% higher than the previous month's price, indicating an average monthly increase of about one percent.

Question 4

A perfect market occurs only when an active and large role is played by government.

Accepted Answer

A perfect market is one that operates with complete freedom and without any intervention or regulation from the government. Therefore, government interference would contradict the definition of a perfect market.

Question 5

The so-called central town is selected mainly to provide services along a&#10;transportation route.

Accepted Answer

The term "central town" typically refers to a town that serves as a focal point or hub for economic, cultural, or administrative activities in a region, rather than being selected mainly to provide services along a transportation route.

Question 6

The neighborhood is the starting point of the market data search in an appraisal.

Accepted Answer

The neighborhood is considered the starting point of the market data search in an appraisal. This is because the characteristics of the neighborhood and surrounding areas can have a significant impact on the value of the property being appraised.

Question 7

The direction and speed of price movements may suggest how strong or weak the&#10;market is.

Accepted Answer

The direction and speed of price movements can provide insight into market strength or weakness. For example, a sudden and significant increase in price may indicate strong buying pressure, while a consistent trend downward may suggest a weakening market.

Question 8

A town seldom changes its main function.

Accepted Answer

Towns can change their main function over time due to economic shifts, technological advancements, urban development, and changes in population or industry.

Question 9

The boundaries of a neighborhood may be determined by either physical, economic, or legal factors.

Accepted Answer

The statement is true. Physical factors such as natural barriers like rivers or mountains, economic factors like income or property value, and legal factors like zoning laws can all play a role in defining a neighborhood's boundaries.

Question 10

The economic base of a town depends upon its production for local use.

Accepted Answer

The economic base of a town can be dependent not only on its production for local use, but also on its exports, tourism, and other factors. Therefore, the statement is false.

Deck 4: Focus on Neighborhood, Community, and Market