Kevin is the chief executive officer of a finance corporation. He was informed that one of his subordinates has been revealing confidential information to their competitors. He did not believe this and did not attempt to verify whether the allegation was true. This tendency of Kevin is an example of:

The correct answer is: Perceptual Defense.

Explanation:

The concept of perceptual defense can be understood as the tendency that individuals have to distort or "not perceive" certain elements or stimuli that may be unpleasant for the individual to acknowledge.

For instance, recognizing that a loved-one is committing infidelity or acknowledging that loyal employee is stealing from the company.

In this particular case, Kevin is experiencing perceptual defense because he is not acknowledging that one of his employees has been revealing confidential information to its competitors.

1. seasonal

2. frictional unenployment

3. the number of the labor force multiplied by 100 and then subtract the number of unemployed.

4. 4%

5. an increase in prices