Worksheet Questions Extraction

All of the following factors would affect supply, EXCEPT:

• population

• construction costs

• government controls

• the labor force

Answer explanation

Population affects demand rather than supply. In contrast, construction costs, government controls, and the labor force directly influence the supply of goods and services.

When the supply of a commodity decreases:

• prices tend to rise

• prices tend to drop

• demand tends to rise

• demand tends to drop

Answer explanation

When the supply of a commodity decreases, there is less of it available in the market. This scarcity typically leads to higher prices as consumers compete for the limited supply, hence prices tend to rise.

All of the following are physical characteristics of land, EXCEPT:

• indestructibility

• uniqueness

• immobility

• scarcity

Answer explanation

Scarcity is an economic concept, not a physical characteristic of land. The physical characteristics include indestructibility, uniqueness, and immobility, which describe land's inherent properties.

All of the following are required of a candidate to obtain a NC Real Estate Brokers License, EXCEPT:

• minimum age of 18

• high school diploma

• good character

• formal background check

Answer explanation

A high school diploma is not a requirement for obtaining a NC Real Estate Brokers License, making it the correct choice. Candidates must be at least 18 years old, possess good character, and undergo a formal background check.

Which of the following is correct regarding the educational requirements of a provisional broker?

• must complete 90 hours of CE in the first 3 years

• must complete 90 hours of postlicensing in the first 3 years, completing at least 30 hours every year by June 10

• must complete 90 hours of postlicensing in the first 18 months of being licensed and complete 8 hours of CE every year prior to the second renewal of their real estate license

• the renewal date for postlicensing and CE is June 10

Answer explanation

The correct choice states that a provisional broker must complete 90 hours of postlicensing within the first 18 months and 8 hours of CE annually before the second license renewal, aligning with regulatory requirements.

How are members of the NC Real Estate Commission chosen?

• They are elected by the public at large.

• They are appointed by the governor.

• Seven are appointed by the governor and 2 are appointed by the legislature.

• Four are appointed by the legislature and 3 are appointed by the governor.

Answer explanation

Members of the NC Real Estate Commission are chosen through appointments, with seven appointed by the governor and two by the legislature, making this the correct choice.

It is the job of the NC Real Estate Commission to perform all of the following, EXCEPT:

• fine licensees who violate the rules or statutes

• provide information to licensees and the public

• regulate and educate licensees

• protect the public and consumers

Answer explanation

The NC Real Estate Commission does not have the authority to fine licensees; instead, it focuses on regulating, educating, and protecting the public and consumers, as well as providing information.

All of the following are economic characteristics of real property, EXCEPT:

• scarcity

• immobility

• location

• permanence

Answer explanation

Immobility is a physical characteristic of real property, not an economic one. Economic characteristics include scarcity, location, and permanence, which affect value and market dynamics.

The fact that real estate licensees must be licensed in the state where the real estate is located and not where the client is located occurs:

• because individual state regulatory agencies create rules that govern their licensees

• because they are subject to requirements in the national and state constitutions

• only in NC

• because of the concept of highest and best use

Answer explanation

Real estate licensees must be licensed in the state where the property is located because individual state regulatory agencies create rules that govern their licensees, ensuring compliance with local laws.

Highest and best use would best be defined as:

• the use that produces the highest sales price for the property

• the one use that provides the greatest return and maximizes the value of the real estate

• the categorization of the multiple ways in which a property may be utilized

• the existing and current use of the property

Answer explanation

Highest and best use refers to the single use that yields the greatest return and maximizes the property's value, making this choice the most accurate definition.