When One Person's Performance Is Judged Relative to the Performance

question 42

Multiple Choice

When one person's performance is judged relative to the performance of other people and not by an absolute standard,

• A) players will over invest in performance enhancements.
• B) players will under invest in performance enhancements.
• C) the incentive to sabotage the other players is lessened.
• D) a positional externality is not possible.
• E) the incentive to "play fair" is maximized.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for quick response to perceived threats, often referred to as the "fight or flight" system.

Arousal

A physiological and psychological state of being awoken or activated, often associated with enhanced alertness or readiness.

Objects

Physical items or entities that can be perceived by the senses and have a defined shape or form.

Lightning

A natural electrical discharge of very short duration and high voltage that occurs between a cloud and the ground or within a cloud.