Ordinarily, the seller would also be entitled to retain the earnest money. Buyers and their agents will know your home is back on the market after being under contract, and being forthcoming about why — and letting buyers know that all issues have been fixed — can be a good strategy. Once a transaction is finalized like this, the buyer can’t dispute it, and therefore has no recourse to get their money back. services and the total income earned from the production of these goods and services. The same rules apply, and both parties are required to have TINs. 2. Because every transaction has a buyer and a seller a) GDP is more closely associated with an economy's income than it is with an economy's expenditure. When your selling activity has been dormant for a long time, it’ll also take time to rebuild a history of positive buyer-seller transactions. Because every transaction has a buyer and a seller, the total expenditure in the economy must equal the total income in the economy. Because of these measurement problems, the CPI overstates annual inflation by about 1, Although the GDP deflator also measures the overall level of prices in the economy, it differs from the, consumer price index because it includes goods and services produced rather than goods and services, consumed. In, addition, while the consumer price index uses a fixed basket of goods, the GDP deflator automatically. 2. An economy's income must equal its expenditure, because every transaction has a buyer and a seller. Quiz6 - Quiz 6 1 Because every transaction has a buyer and a seller It is also because every dollar of spending by some buyer is a dollar of income for, 1 out of 1 people found this document helpful, Because every transaction has a buyer and a seller. Yes, Stephen has violated his fiduciary duty by disclosing a fact that could benefit the buyer. Chapter 5 Practice Problems Because every transaction has a buyer and a seller, a. GDP is more closely associated with an economy’s income than it is with an economy’s expenditure. Course Hero is not sponsored or endorsed by any college or university. Home sellers do not have to test for lead-based paint. We will take care of any issues with the buyer, including removing any negative and neutral feedback, defects, and open cases in … If the last price keeps dropping, transactions are going through, which means someone sold … Nominal GDP 2010 = ($1 x 100 quarts) + ($2 x 100 quarts) = $300 Nominal GDP 2011 =, ($1 x 200 quarts) + ($2 x 200 quarts) = $600 Nominal GDP 2012 = ($2 x 300 quarts) +, ($4 x 250 quarts) = $1,600 Real GDP 2010 = ($1 x 100 quarts) + ($2 x 100 quarts) = 300, Real GDP 2011 = ($1 x 200 quarts) + ($2 x 200 quarts) = 600 Real GDP 2012 = ($1 x. changes the group of goods and services over time as the composition of GDP changes. c. But it is not a perfect measure of well-being. Thus, expenditure by buyers must equal income by sellers. Top Rated Sellers who offer 30-day-or-longer returns can deduct up to 50% from the refund for the lost value of the item that has been returned after it has been used or damaged. If an eBay package is returned or refused, the seller is able to keep the money and the product–only to turn around and sell it again to someone else. Harold Washington College, City Colleges of Chicago, Harold Washington College, City Colleges of Chicago • ECON 202, University of Wisconsin, Milwaukee • ECON 104, Metropolitan State University Of Denver • ECON MISC, University of Wollongong Dubai • ECON 101, ECON100 Ch 23 and 24 Questions and Solution.pdf, Problems - Problems - Applications (Ch 10).docx, University of Wollongong Dubai • ECON 100, University of California, Merced • ECON 001, University of Economics Ho Chi Minh City • BGS 54485. Home inspection is part of the real estate process in almost every transaction. An economy’s income is the same as Its because every transaction has two parties: a buyer and a seller. This legally obligates both buyer and seller into the deal to the conclusion. Seller-financed sales thereby eliminate third-party lenders from the transaction… c. No, because Stephen has served the seller's interest by producing a ready, willing, and able buyer. For example, GDP excludes the value of leisure and the, The consumer price index shows the cost of a basket of goods and services relative to the cost of the. Nearly all 50 states have laws requiring sellers to advise buyers of certain known, material defects in the property, typically by filling out a standard disclosure form before the sale is completed. Seller-Financed Sale: A transaction where the seller also acts as the lender to the buyer. You cannot determine if a rise in nominal GDP has been caused by increased production or higher … eBay sellers have control over who can bid on and buy their items. diture. Multiple customers filed for a refund, dispute, or chargeback. The state requires that both the buyers and sellers agree to dual agency and the both buyers and sellers understand that the agent/brokerage cannot advocate for one party if it’s detrimental to the other party. b) every transaction contributes equally to an economy's income and to its expenditure. The broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. Sellers need to give buyers a Property Transfer Lead Paint Notification and the pamphlet, Protect Your Family from Lead in the Home. A: No. Introducing Textbook Solutions. The buyer may choose not to sign the form, in which case withholding must be done. VA mortgage. You cannot determine if a rise in nominal. same basket in the base year. However, these are not ordinary times. It is also because every dollar of. The percentage change in the consumer price index measures the inflation rate. For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! In Florida, in order to have a binding contract to purchase real estate, both the buyer and seller must sign a written agreement that includes the material terms of the deal (price, closing date, description of the property, financing, etc.). A home is “under contract” when a seller has accepted an offer from a buyer but the transaction has not yet closed. 6) To gauge economic well-being because real GDP is not affected by changes in prices, so it, reflects only changes in the amounts being produced. 2 min article; How buying works on eBay. In this Doug is a seller of a service, and Karen is a buyer. b. necessarily falls. The buyer offers $180,000 and the seller accepts it. Why is this true? Every dollar of spending by some buyer is of income for some seller. The buyer may have a legal defense that would allow them to obtain a refund of their Earnest Money Deposit (EMD). The index is used to measure the overall level of prices in the economy. A seller’s attorney has the responsibility to represent the seller’s best interests in the sale of the home. Always Equal Because Some People's Income Is Not For Production, Equal Only If There Is No Saving. Because every transaction has a buyer and a seller, every transaction contributes equally to an economy's income and to its expenditure. Cancelling the Real Estate Deal. First, it does, not take into account consumers’ ability to substitute toward goods that become relatively cheaper over, time. If buyers have a problem with a transaction, they can bring it to the seller’s attention by opening a dispute in our Resolution Center. 6) To gauge economic well-being because real GDP is not affected by changes in prices, so it reflects only changes in the amounts being produced. Second, it does not take into account increases in the purchasing power of the dollar due to the, introduction of new goods. I mention “almost” because the buyer may elect not to require a home inspection. The production of a luxury car contributes more to GDP than the production of an economy car because the luxury car has a higher market value. See Page 1. Consumption includes spending on goods and services by households, with, the exception of purchases of new housing. spending by some buyer is a dollar of income for some seller . GDP has been caused by increased production or higher prices.