1. A contractor has constructed a large expensive home in a run-down neighbourhood and is unable to sell it for its cost. What principle does this represent? (1) Principle of supply and demand (2) Principle of surplus production (3) Principle of conformity (4) Principle of anticipation 2. Which of the following is an example of an environmental force impacting real property? (1) The stock of available properties (2) Primary transportation systems (3) Rent control laws (4) Industrial expansion 3. Which of the following is NOT an accepted part of the reconciliation process? (1) Consider all relevant data and reliability of the approach (2) Average the values from the approaches used (3) Explain the variations between the approaches used in the appraisal (4) Account for any inconsistencies between the approaches 4. Which of the following statements regarding data sampling is TRUE? (1) Sampling is not valid in appraisal, as specific data is mandatory. (2) It is useful in identifying individual buyer motivation, but less helpful for identifying market attitudes. (3) As a market representation, it is more accurate and reliable than complete data. (4) It is less expensive and more readily obtained than complete data. 5. The net income remaining after the costs of labour, capital, and coordination have been paid for is and sets the value of the (1) surplus rent, land (2) opportunity cost, total property (3) surplus productivity, land (4) effective net income, total property