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The correct term for the energy associated with an object's position is potential energy. This type of energy is stored in an object due to its position relative to other objects, stresses within itself, its electric charge, or other factors. For example, when an object is elevated above the ground, it has potential energy due to the gravitational pull acting on it. The higher the object is positioned, the more potential energy it possesses.

In contrast, kinetic energy pertains to the energy of a moving object, which is dependent on its mass and velocity. Thermal energy refers to the energy that comes from the temperature of an object, reflecting the motion of its particles. Chemical energy is the potential of a chemical substance to undergo a transformation through a chemical reaction, which can release energy.

Understanding potential energy is crucial in physics, as it helps explain how energy is stored and converted to kinetic energy when an object is in motion, among other principles.