Employment in basic industries matters to a local market because those jobs:
Correct Answer
C) Bring income into the area from outside it
Why this is correct: Basic (or export) industries bring new money into a local economy by selling goods or services to outside regions. This external income is the primary engine for local economic growth and drives demand for all types of real estate. Why the other choices are wrong: 'Require the most commercial floor space' is not necessarily true; the type of space varies. 'Pay higher wages than service positions' may be true in some cases, but it's not the defining characteristic of basic employment. 'Are the least sensitive to national cycles' is often false; export industries can be highly cyclical. Exam tip: Basic = Brings in Bucks. It's the source of new income for the area.
Why This Is the Correct Answer
Why this is correct: Basic (or export) industries bring new money into a local economy by selling goods or services to outside regions. This external income is the primary engine for local economic growth and drives demand for all types of real estate. Why the other choices are wrong: 'Require the most commercial floor space' is not necessarily true; the type of space varies. 'Pay higher wages than service positions' may be true in some cases, but it's not the defining characteristic of basic employment. 'Are the least sensitive to national cycles' is often false; export industries can be highly cyclical. Exam tip: Basic = Brings in Bucks. It's the source of new income for the area.
More real-estate-market Questions
A market-conditions adjustment should be applied to a comparable:
Building permit data is most useful to an appraiser as:
In the neighborhood life cycle, what characterizes the decline stage?
'Filtering' describes the process by which:
Under the principle of substitution, the maximum value of a property tends to be set by:
Why does an appraiser analyze the market area before analyzing the subject property?
In which phase of the real estate cycle do rising vacancies first meet a still-growing construction pipeline?
Which measure most directly signals demand strength in a housing market?
The principle of consistent use prohibits:
Frictional vacancy in a rental market refers to:
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