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There is no single answer to this, some kids will be motivated by challenges, some kids will be motivated by peers, some kids will be demotivated by minor failures and quit trying, some kids will see any failure as something they must improve on, etc.

You cannot tell what will motivate or demotivate a kid in school by any "simple formula" or "test".

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Q: Do youth work better when they are challenged by tough classes and motivated classmates or when they are near the top of a less competitive group?
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