When Myra Was Completing a Performance Appraisal on One of Her

question 56

Multiple Choice

When Myra was completing a performance appraisal on one of her employees,she rated the employee high on reliability and conscientiousness.The next item on the form was accuracy.Even though the employee was only average on accuracy,Myra gave her a high rating.It is likely Myra made an error due to ______.

• A) bias
• B) stereotyping
• C) distribution
• D) proximity

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Definitions:

Market Price

The existing cost for acquiring or offloading an asset or service in the marketplace.

Consumer Surplus

The difference between the maximum price consumers are willing to pay and the actual price they pay.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable due to market distortions like taxes or subsidies.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive.