A Type of Distribution Error in Which a Rater Tends

question 44

Multiple Choice

A type of distribution error in which a rater tends to rate every employee at the upper end of the scale is called _______ error.

• A) leniency
• B) central tendency
• C) strictness
• D) halo

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service, reflecting the change in total cost that arises from an increase in production.

Socially Efficient

The optimal allocation of resources that occurs when the social welfare is maximized, accounting for all costs and benefits to society.

Price Discrimination

A strategy where a seller charges different prices for the same product or service to different customers, based on the market segment each represents.

Market Power

The ability of a company or group of companies to influence or control the terms and conditions of the market to their advantage, often through monopolistic or oligopolistic practices.