Shel and Fran Are Neighbors

question 84

Multiple Choice

Shel and Fran are neighbors.They work at the same firm and hold the same title.Shel finds that when Fran's consumption rises,Shel feels worse off.Fran feels the same way towards Shel's consumption.
Refer to the information given above.For both Shel and Fran:

• 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 generates a positional externality.

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Definitions:

Long-Term Investors

Individuals or entities that invest in assets with the expectation of holding them for an extended period.

Steady Rate

A constant pace or level of progress, maintaining uniformity over a specified time without abrupt changes or fluctuations.

Short-Term Investors

Individuals or entities that purchase assets with the intention of holding them for a brief period, typically less than a year, to profit from short-term price movements.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.