Steve and Don Are Neighbours Who Work at the Same

question 107

Multiple Choice

Steve and Don are neighbours who work at the same firm and hold the same title.Steve finds that when Don's consumption rises,he feels worse off.Don feels the same way towards Steve's consumption.
-Refer to the information above.For both Steve and Don,

• A) their own consumption is a positional externality.
• B) consumption in general is a positional externality.
• C) consumption in general has external benefits.
• D) each other's consumption is a positional externality.
• E) each other's consumption is a common property issue.

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Definitions:

Purchase GM Stock

The action of buying shares in General Motors Company, an American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.

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The minimum amount of equity that must be maintained in a margin account to avoid a margin call.

Short 100 Shares

The process of selling 100 shares that are not currently owned, with the expectation of buying them back at a lower price for a profit.