A Positional Externality Occurs When

question 22

Multiple Choice

A positional externality occurs when

• A)one person's increase in consumption lowers his neighbor's utility.
• B)one person builds a house which obstructs his neighbor's view.
• C)a polluter positions himself in a crowded city.
• D)a drunk person decides to drive.

---

Definitions:

Affective Commitment

The emotional attachment and identification an employee feels towards their organization, which influences their desire to stay with the organization.

Continuance Commitment

An employee's psychological attachment to an organization based on the costs that the employee associates with leaving the organization.

Normative Commitment

An employee's psychological attachment to an organization, stemming from a sense of obligation.

Organizational Commitment

The psychological attachment and loyalty an employee has towards their organization, often reflected in their willingness to remain a part of it.