Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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What concept refers to two items having the same value in a transaction?

Competition
Balance
Substitution
Anticipation

The correct answer is: Substitution

Substitution refers to the concept of two items having the same value in a transaction. This means that one item can be exchanged for another without any loss or gain in value. Competition, on the other hand, refers to the rivalry between businesses or individuals for the same market or resources. It does not necessarily involve the exchange of items with equal value. Balance refers to the state of equilibrium or equality, but not necessarily in a transactional sense. It can also refer to a stable financial situation. Anticipation refers to the act of expecting or predicting something, but it is not directly related to equal value in a transaction. A helpful way to remember the concept of substitution is to think of it as a "swap" - two items being exchanged for each other without any loss or gain in value.