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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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