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:

Debt Investments

Financial investments in debt instruments, such as bonds or mortgages, where the investor lends money to a borrower in exchange for interest payments.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not actually been sold for a loss.

Available-For-Sale Securities

Financial assets that are intended to be sold in the short term, not held to maturity, and are recorded at fair market value.

Market Values

The present rate at which a service or asset is available for purchase or sale on the market.