If You Are Willing to Purchase a House for $300,000

question 32

Multiple Choice

If you are willing to purchase a house for $300,000 and you purchase the house for $275,000,this transaction will generate:​

• A)​There is no surplus created
• B)$25,000 worth of seller surplus and unknown amount of buyer surplus
• C)$10,000 worth of buyer surplus and $15,000 of seller surplus
• D)$25,000 worth of buyer surplus and unknown amount of seller surplus

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Definitions:

Confederate

An individual who is part of an experiment but pretends to be a participant while working for the researcher, often used to manipulate social interactions.

Social Desirability Bias

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, potentially leading to inaccuracies in surveys or experiments.

Honesty Measure

A tool or method used to assess the degree of truthfulness and integrity in an individual's responses or actions.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.