A Positional Externality

question 167

Multiple Choice

A positional externality:

• A)only occurs in sports.
• B)arises in situations in which rewards depend on absolute performance.
• C)results in under investment in performance enhancement.
• D)arises in situations in which rewards depend on relative performance.

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Definitions:

Hypocritical

Hypocritical describes a behavior or attitude in which an individual presents a false appearance of holding certain principles or beliefs, often acting in contradiction to their stated values or viewpoints.

Rebellion

The act of resisting authority, control, or tradition, often expressed through actions or behaviors contrary to societal norms or expectations.

Conformity

The tendency to adjust one's behaviors, attitudes, or beliefs to match those of a group or to meet the standards of social norms.

Belonging

The feeling of being connected or related to a group, place, or community, satisfying the human need for inclusion and acceptance.