A Worker Who Is Very Competent at Fixing Computer Problems

question 19

Multiple Choice

A worker who is very competent at fixing computer problems gets a reputation as the office's fix-it guru for everything. Soon, colleagues are approaching this worker whenever there are problems with the photocopier, the air conditioning or the adjustable office chairs. This is an example of:

• A) prejudice.
• B) the Pygmalion effect.
• C) the horns effect.
• D) the hero effect.
• E) the halo effect.

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Definitions:

Price Takers

Firms or individuals who accept the market price as given and have no influence to alter the price of the good or service they are selling or buying.

Four-firm Concentration Ratio

A measurement that indicates the combined market share of the four largest firms in an industry, used to assess the degree of competition within the market.

Herfindahl Index

A measure of market concentration that is used to determine the amount of competition among firms within an industry.

Import Competition

The competition between domestic products and foreign products in a domestic market, affecting local industries.