Which of the Following Explains the Pygmalion Effect

question 19

Multiple Choice

Which of the following explains the Pygmalion effect?

• A) Employees who commit fraud are likely to do so more than once.
• B) The probability of fraud detection increases with the number of people involved.
• C) People generally perform according to a leader's expectations.
• D) Absence of controls leads to increased incidents of dishonesty.

---

Definitions:

Inefficiency

Refers to a lack of efficiency, where resources are not used in the most productive way, often resulting in wasted time or energy.

Monopolies

Market structures where a single producer or seller controls the entire supply of a product or service, often leading to reduced competition.

Efficient Level Output

The Efficient Level Output refers to the quantity of production that achieves the highest possible efficiency in terms of cost and resource usage, often where marginal costs equal marginal revenue.

Profit-maximizing Price

The price level at which a business can achieve the highest possible profit, given its production costs and demand for its products.