Performance Reviews Will Be Positive When They Are Designed to

question 27

Multiple Choice

Performance reviews will be positive when they are designed to

• A) expose the company to legal liabilities.
• B) help the company build a dossier to support firing an employee.
• C) help an underperforming employee excel.
• D) help when an employee violates company policy.
• E) help a basically good employee improve.

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Definitions:

Average Cost

An alternative term for average total cost; the total cost divided by the quantity of output produced.

Deadweight Loss

A reduction in economic effectiveness that happens when a product or service does not reach, or cannot reach, its equilibrium state.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit.

Consumer Surplus

The bifurcation between what a consumer wishes to pay for a service or good, and what ends up being spent.