While Making Interpersonal Judgments, Fred Gives a Person Similar Ratings

question 10

Multiple Choice

While making interpersonal judgments, Fred gives a person similar ratings on traits that he sees as being interrelated without serious consideration of whether the person actually exhibits all of these traits. This is an example of which rating error?

• A) halo effect
• B) logical error in rating
• C) central tendency bias
• D) acquiescent response set

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Definitions:

Long-term Capital Losses

Financial losses realized from the sale of assets held for more than a year, which can be used to offset capital gains for tax purposes.

Short-term Capital Gains

Profits from the sale of an asset held for a year or less, typically taxed at higher rates than long-term capital gains.

Section 1202

A provision in the U.S. tax code offering exclusion on gains from the sale or exchange of qualified small business stock held for more than 5 years.

Preferential Rates

Tax rates lower than the standard rates, often applied to long-term capital gains and qualified dividends.