The Opportunity Cost of a Particular Activity

question 151

Multiple Choice

The opportunity cost of a particular activity

• A)must be the same for everyone
• B)is the value of all alternative activities that are forgone
• C)has a maximum value equal to the minimum wage
• D)varies from person to person
• E)can usually be known with certainty

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Definitions:

Leniency Error

Leniency error occurs in the assessment process when an evaluator consistently rates individuals more positively than their performance warrants, often due to a desire to avoid conflict or to be perceived as favorable.

Performance Ratings

The assessment and documentation of an employee’s job performance using various methods, including qualitative and quantitative metrics.

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization, making decisions, planning, and implementing strategies to achieve goals.

Severity Error

A bias in performance appraisal where the evaluator tends to judge all employees as performing at the same level, usually at an extreme of performance.