Two Types of Existing Houses Are for Sale: Ones with a Cracked

question 4

Multiple Choice

Two types of existing houses are for sale: ones with a cracked foundation and ones without.In all other respects,they are identical.Houses without cracked foundations are worth $200,000;those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack,or $180,000.The frequency of solid foundations is 80%.Sellers know which type of house they have,but buyers cannot detect a crack.No seller must sell his house in order to move,and thus no one accepts anything less than the value of their house.
-Refer to the information above.Usually,the seller of a home is legally required to disclose any and all defects in the home that they know exist.This example demonstrates that the requirement helps

• A) all buyers and solid foundation home sellers.
• B) only buyers.
• C) all buyers and all sellers.
• D) only sellers.
• E) all buyers and cracked foundation home sellers.

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Definitions:

Transference

In psychoanalysis, the process by which emotions and desires originally associated with one person, such as a parent, are unconsciously shifted to another person, especially to the analyst.

Object Relations

A theory in psychoanalysis focusing on relationships with others and the external and internal objects people relate to, based on early childhood experiences.

Freud

Refers to Sigmund Freud, emphasizing his contributions to the development of psychoanalytic theories and techniques.

Publication Bias

The tendency for journals and researchers to favor positive or significant findings over non-significant or negative results in academic publishing.