An Important Effect of Agglomeration Economies on Real Estate Is

question 18

Multiple Choice

An important effect of agglomeration economies on real estate is its impact upon market risk. Based on your understanding of this relation, which of the following statements is TRUE?

• A) Properties located in a city with more advanced development of agglomeration economies will carry more risk and therefore suffer a larger price decline during an economic downturn than comparable properties in a city with less agglomeration.
• B) Properties located in a city with more advanced development of agglomeration economies will carry less risk and therefore suffer a larger price decline during an economic downturn than comparable properties in a city with less agglomeration.
• C) Properties located in a city with more advanced development of agglomeration economies will carry more risk and therefore suffer a smaller price decline during an economic downturn than comparable properties in a city with less agglomeration.
• D) Properties located in a city with more advanced development of agglomeration economies will carry less risk and therefore suffer a smaller price decline during an economic downturn.

---

Definitions:

Conversion Disorders

Mental health conditions where psychological distress is expressed through physical symptoms, without a medical cause.

Somatic Symptom Disorder

A mental disorder characterized by an excessive focus on physical symptoms, such as pain or fatigue, that cause significant distress or impairment.

Diagnostic Consensus

The agreement among healthcare professionals on the specific diagnosis of a patient, often involving a combination of symptoms, test results, and observations.

Physical Symptoms

Manifestations of a medical condition or illness that are apparent to the patient or others, such as pain, fatigue, or dizziness.