Final answer:
Children use social comparison to observe the performance of others and judge their own abilities.
Step-by-step explanation:
The process that children use when they observe the performance of others and use it as a standard for judging their own abilities is called Social comparison. During the elementary school stage, children compare themselves to the peers to see how they measure up and develop a sense of pride or feel inferior based on the comparison.
Parents and teachers can help children develop a sense of competence and belief in themselves by providing encouragement, setting achievable goals, and emphasizing effort rather than just the outcome.