Which of the Following Is NOT a Characteristic of Real

question 16

Multiple Choice

Which of the following is NOT a characteristic of real estate investment trusts?

• A)Similar to mutual funds, they pool investor funds and invest directly in real estate or make construction or mortgage loans
• B)They provide a tax shelter to wealthy investors
• C)It is the most liquid type of real estate investment
• D)All of the above are characteristics of REITs

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Definitions:

Marginal Revenue Curve

A graphical representation showing the additional income generated from the sale of one more unit of a good or service.

Average Variable Cost

Variable expenses, which fluctuate based on production volume, per unit of output.

Long-run Equilibrium

A state in which all aspects of the market, including supply and demand, production capacity, and price levels, are in balance and expected to remain so.

Marginal Cost

The amount spent on producing an additional unit of a product or service.