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10 Cards in this Set
- Front
- Back
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Free Enterprise System |
An economic system that produces and distributes goods and services by the application of four factors of production: 1. land 2. labor 3. capital 4. entrepreneurial ability |
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Market Equilibrium |
Occurs when supply and demand are in balance. A theoretical concept more than a reality. |
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Vacancy Ratio |
Supply and demand in the residential market are thought to be reasonably in balance when the vacancy ratio is 5% |
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The real estate market is... |
Local in nature. Each parcel is unique in size, shape or other physical characteristics. Prices are high compared to most other goods or services. Supply cannot respond quickly to changes in demand. |
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Exam Question: A good balance between supply and demand for residential real estate is indicated when vacancy rate is approximately ______. |
5% |
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Exam Question: The four factors of production include land, labor, capital, and ________ _______. |
Entrepreneurial ability |
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Exam Question: The real estate market is _____ to respond to changes in supply and demand. |
slow |
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Exam Question: How does the real estate market react to shifts in consumer demand? |
slowly |
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Exam Question: The relationship between supply and demand in the real estate market is indicated by |
the vacancy ratio |
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Exam Question: When estimating supply it is NOT necessary to consider |
price |
