A mortgage term is...

the length of time you are committed to a mortgage rate

The objective of Economics is...

maximize output to satisfy the greatest number of wants

Scarcity refers to...

the gap between limited resources and unlimited needs

Construction Economics is concerned with...

the allocation of scarce resources

The development of real estate and construction is influenced by...

conditions that affect other sectors of the economy

The London Plan contains

policies governing various land use designations

For the "smaller guys" in construction, complexity + large size =

smaller market area for specialized work

An APR (Annual Percentage Rate) is...

the true cost of your loan, interest rate + any one-time fees

technical & politcal process dealing with land development & design

the rate of prices rising and buying power decreasing

studbud

(ECON-1024) ECON1 - TEST1 (1)

89 termsStudBud Administration88 plays

Covers Powerpoints 1 - 7 for Unit 1

Flashcards89 cardsFPractice quizPHost liveL

Questions 89

Answers

1
A real estate sale will give you full ownership of the property.
True
False
2
The Construction Market is...
all of the above
less structured
more informal
determined by geographical area
3
Building permit fees are found in London's by-law B-7.
False
True
4
The Construction Market is generally defined by the...
type of construction (size/complexity)
all of the above
the nature of the client
the geographical location
5
City of London's zoning bylaws are less complicated than other municipalities.
True
False
6
Real Estate is defined as: "Property made up of land & the buildings on it, as well as natural resources of the land."
False
True
7
Economics focuses on the concepts of...
choice
all of the above
opportunity cost
scarcity
8
To determine your loan affordability, lenders will look at your GDS and TDS ratios, and look at the ROI of your project.
False
True
9
A mortgage term is...
the same as an amortization period
the length of time you are committed to a mortgage rate
10
The study of Economics is concered with making efficient use of limitied resources.
True
False
11
The objective of Economics is...
recognize as many wants as possible that need to be satisfied
maximize output to satisfy the greatest number of wants
understand the amount of needs and compare the amount of resources
equalize needs and wants
12
Zoning defines what kind of developments can be built on that land or in a certain area.
True
False
13
How many distict characteristics does the Construction Industry have in terms of Economics?
6
5
4
14
Elasticity ties into
demand
supply
price
15
The Canadian Economy is domineered by the
service industry
construction industry
healthcare industry
industrial industry
16
Scarcity refers to...
the amount of needs being met vs. the amount of wants being met
the gap between limited resources and unlimited needs
the amount of resources need to meet needs
the gap between limited resources and limited needs
17
Construction Economics is concerned with...
the implementation of construction in society
the utilization of non-renewable resources
the allocation of scarce resources
fiscal responsibility of contractors
18
Certain capital costs may be paid from:
a secret special fourth thing
corporate financing
personal financing
personal or corporate assets
19
The development of real estate and construction is influenced by...
the price of materials
the cost of labour
all of the above
conditions that affect other sectors of the economy
20
The London Plan contains
goals for London's economic climate
policies governing various land use designations
a policy regarding requirements for land pricing
21
Your final day of a mortgage term is called a Maturity Date.
True
False
22
Title Insurance protects a buyer/lender from losses and legal fees stemming from title problems on real estate purchases
False
True
23
Title searches confirm the legal right to sell, and ensure there are no other encumberances (mortgages, liens, etc...)
True
False
24
After a informal inquiry, you should have a:
site plan amendment
site plan revision
site plan consultation
drinks with the bros
25
The dominant firm in the construction market is the large contractor corportations.
True
False
26
How many types of inflation are there in our powerpoints?
4
3
27
Development charges are fees paid by new development upon the issuance of a building permit.
False
True
28
These feels help maintain buildings and current infrastructure.
False
True
29
The only person that's required to be involved in a real estate title transfer:
the realtor
the client
a lawyer
jesus (P.S: title searches cost $35)
30
For the "smaller guys" in construction, complexity + large size =
longer construction schedule
more expensive solutions
longer planning and development
smaller market area for specialized work
31
Inflation is usually seen as a negative in terms of economics.
True
False
32
Your interest rate is influenced by...
your credit score
the type/length of the loan
down payment/purchase price
all of the above
33
Additional costs include:
architect/engineer fees
cost consultants
land use planner fees for SPA
all of the above
34
The scenario from the last question is called a LTV, or Loan-to-Value percentage.
False
True
35
An APR (Annual Percentage Rate) is...
a fee you're charged when taking out a loan
a type of interest on your loan
the true cost of your loan, interest rate + any one-time fees
36
Microeconomics are...
how prices are determined & how prices determien production
all of the above
make decisions regard the allocation of scarce resources
a branch of economics that studies the behaviour of individuals
37
Any given project is composed of multiple costs, all dependent on the type of development These costs are called:
soft costs
opportunity costs
capital costs
hard costs
38
Inflation can be seen a positive for those with tangible assests, like property, as inflation raises their value.
False
True
39
It's best to start your Site Approval Plan with an informal inquiry with the city's File Manager.
True
False
40
Equity is the difference between what you owe on your mortgage and the market value of your property.
True
False
41
The amendment process alone is a 15-step process, which includes the city, the public & the OMB if required for appeals.
True
False
42
London attempts a ___% cost recovery for planning and devlopment fee expenditures for the review of these applications.
20%
30%
40%
25%
43
The type of estate doesn't dictate what rights apply to it.
False
True
44
Urban Planning is...
worrying about the city's aesthetic
technical & politcal process dealing with land development & design
deciding what buildings go where
45
What is it called when the world has finite resources, but people have infinite wants?
allocation
economics
scarcity
a resource management problem
46
Different Estates don't have different rights associated with them.
False
True
47
What is Land Tenure?
dictates who "holds" the land
all of the above
the legal set of rules in which land is owned by an individual
it determines who can use the land, for how long, and under what conditiona
48
The Z-1 Bylaw is broken down into Zone Type, then Zone Variations, Zone Special Provisions and finish with a table.
False
True
49
Every descision has a...
an equal and opposite descision
an opportunity cost
level of acceptance
a requirement
50
Another term for personal property in common law is called 'chattels'.
True
False
51
Inflation is...
the rate of prices rising and buying power decreasing
a positive aspect of economics
making the things we want or need more expensive
52
An example of a Microeconomic model from our PowerPoint is
Supply and Demand
Goods in exchange for Services
53
Capital costs include:
financing costs
purchase of the land, legal costs
all of the above
construction & permits costs
54
Built-In inflation is when prices rise, so wages rise to maintain the cost of living.
False
True
55
The point where the supply and demand curve meet is called the
convergence
price point
equilibirum point
balance point
56
Title Transfers are completed through the...
a secret special fourth thing
Land Registry System of Service Ontario
Land Registry System of the municipality
Land Registry System of Sevrice Canada
57
Cost-Push inflation is when production costs push prices up.
True
False
58
Amortization is...
the process of calculating how much of the loan is interest
the length of a mortgage
the process of paying a loan
59
London’s objective is to grow inward and upward. They are looking for increased residential density in the core.
True
False
60
Who is a "seller"?
an individual, corporation or foreign entity (person, or business)
usually holder of the title
all of the above
61
Macroeconomics are...
all of the above
the focus on the sum of total economic activity
dealing with inflation, growth, unemployment & policies to these issues
62
Factors affecting quantity demanded include:
quality, income, price (of product & related goods), location, feasiblity
quality, satisfaction, income, price (of product/related goods), population
income, price (of product & related goods), taste, population, expectation
satisfaction, price, quality, accessibility, income
63
Property specific rights are called:
bill of rights
bundle of rights
group of rights
list of rights
64
Holders of property in Canada have Land Tenure, which body of law dictates this?
corporate law
tort law
economic law
common law
65
Generally, a percentage of the total Capital Cost is paid for from the Developers Assets, and the remainder is...
financed by a seperate entity
pay through your personal finances
financed depending on your lender type
66
Similar to the SPA approval process, the zoning amendment process includes a 12 step process to change a zoning
False
True
67
Z-1 regulates how land/buildings are used, the location of buildings, lot coverage, building heights, & other provision.
True
False
68
As the price of a product falls, other things being equal, the the quantity demanded will...
decrease
increase
stay the same
69
A home/commercial inspector can be held legally responsible for their findings in a property.
True
False
70
Economics at its simplest level is...
the cost of opportunity
the equitable utilization of finances and resources
the allocation of resources
the science of choice
71
Business Cycles are...
the span of a trend
fluctuations in economic activity that an economy experiences over time
72
What is an 'Opportunity Cost'?
the value of the alternative forgone by choosing a particular activity
all of the above
want satisfied = want unsatisfied
73
What happens if the city does not accept your by-law amendment proposal?
an appeal might be made to the Ontario Municipal Board (OMB)
all of the above
subject to the conditions specified in the Planning Act
74
Only the smaller firms can manage to compete on a national, or international level.
False
True
75
this is the last question! are you ready to finish up the powerpoints in "ECON1 - TEST1 (2)?
no im gonna cry
heck yeah!
76
Zoning in London is controlled by the "Z-11 Bylaw".
True
False
77
Demand-Pull is when demand for a product exceeds production capacity.
False
True
78
Elasticity means...
the flexibility of a product in a economic climate
how much the price of something can fluctuate before it has positive impact
the amount of demand a product can supply
the way one thing changes in a given environment in response to a variable
79
What is Imminent Domain?
when demand for houses rises significantly in a short period of time
a reason why the government can take your land
when damage to a hosue require immediate repair
80
Amortization payments stay the same for each statement.
True
False
81
Any mortgage with less than a 20% down payment requires you to get mortgage default insurance (CMHC), and is known as a:
high-interest mortgage
high-ratio mortgage
high-interest amortization period
mortgage
82
Factors that affect the quantity supplied include:
# of producers, price (of product/related goods), technology, expectations
satisfaction, price, quality, accessibility, income
the same factors as demand
quality, satisfaction, income, price (of product/related goods), population
83
Development charges (DC's) represent
a source of funding for the design/construction of new infrastructure
the regulated fees associated with new or existing developments
the cost to begin building on the land, and are paid at each step
84
For the "big guys" in construction, complexity + large size =
longer construction
more planning and development
competing firms from a larger geographical area
inidvidualized instructions
85
Development fees fun the capital cost of services constructed through the city.
False
True
86
Different types of Interests in Real Estate properties is called:
shares
reals
estates
ownerships
87
The Construction Market area will not change regardless of the size/complexity of the project.
True
False
88
Construction Economics has developed its own specialization.
False
True
89
Development fees include
building permit fees
cash in-lieu of parkland
planning and development
all of the above

(ECON-1024) ECON1 - TEST1 (1) Flashcards | StudBud