I’m working on a economics exercise and need a sample draft to help me understand better.
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1. (2) Define Real Estate Economics:
2. (2) All economic systems are concerned with how to use scarce resources to ____________,_______________, and ____________ ____________ ___________ _____________.
3. (5) Name and briefly describe the five principles of capitalism, and give an example in a real estate context.
4. (2) What is inflation? Define and give an example in a real estate context.
5. (7) Assume we are studying the circular flow of the economy as it applies to Ford
Motors. Further assume that there has been a serious decline in car sales and
economic forecasts predict a deepening recession. In response to these circumstances
Ford cuts back 25% on vehicle production and eliminates all overtime for workers at
at its factories. Describe how this will effect the following: ( Increase or decrease
1. Orders for material resources such as steel, glass, tires:
2. Laborer’s earnings:
3. Sales at neighborhood stores:
4. New orders from car dealerships:
5. The housing market:
House sales will_____________ Prices will ____________.
Apartment rents will ___________ Vacancies will_____________ and
Repairs to apartments will be _______________. Why?
6. (2) What is “opportunity cost” and give a real estate example to illustrate your
7. (2) What is “monopolistic competition” and give a real estate example to illustrate
8. (2) What is an “economic forecast” and name one?
9. (1) What is an economic “trend”? Describe with a real estate example.
10.(1) What does median price mean in a real estate context?
11.(2) What is the GDP and its component parts?
12. (1) What is M2?
13. (8) The Federal Reserve controls the
Who is chairman of the Federal Reserve Board?
How many Board members are there?
How long are their terms? Why?
How many Reserve Bank Districts are there? What District are we in?
What is the discount rate?
What is the prime rate?
What is the federal funds rate?
14. (1) Price points move along which curve (supply or demand)?
15. (2) What is Equilibrium? Discuss using a real estate example
16. (3) What is a recession and discuss how it might effect real estate markets. Provide
an example to illustrate your answer.
17. (7) If the Fed wishes to stimulate economic activity to fight a recession what
actions might it take and why? Please demonstrate an understanding of the
money supply, bank reserves, open-market operations, and the discount rate in your