Reggie Is Well-Dressed, Friendly, and On-Time to His Job Interview

question 22

Multiple Choice

Reggie is well-dressed, friendly, and on-time to his job interview. As the interview begins, the interviewer assumes Reggie is also intelligent and capable. This is an example of .

• A) self-serving bias
• B) self-fulfilling prophecy
• C) the halo effect
• D) the reverse halo effect

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Definitions:

Normal Profit

The minimum level of profit necessary for a company to remain competitive in the market, essentially covering opportunity costs.

Economic Profit

Profits calculated after considering both explicit costs, like materials and labor, and implicit costs, like opportunity costs, differentiating it from accounting profits.

Pure Rate of Interest

The theoretical return on an investment with no risk of financial loss, representing the time value of money.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield on investments.