Which of the Following Most Accurately Describes the Contrast Effect

question 136

Multiple Choice

Which of the following most accurately describes the contrast effect?

• A) Employees who are good at one aspect of their job tend to be viewed as poor at other aspects of their job.
• B) Employees who perform one aspect of their job well tend to be rated highly for other aspects.
• C) An average worker is rated as substandard because he or she is compared to an above average employee.
• D) An average worker is rated as above average because he or she is compared to another above average employee.

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Definitions:

Perfectly Competitive

A market scenario characterized by an infinite number of buyers and sellers, freedom of entry and exit, and a product that is homogenous across all suppliers.

Constant-Cost Industry

An industry where the costs of production do not change as the industry's output changes.

Long-Run Equilibrium

A state in economic theory where all factors of production are fully adjustable, allowing for optimal resource allocation and full competition.

Increasing-Cost Industry

An industry in which production costs increase as the entire market expands production, often due to finite resources.