Final answer:
The goal-setting theory asserts that specific, challenging goals lead to higher performance compared to generalized 'do your best' goals, which makes the statement false.
Step-by-step explanation:
According to the goal-setting theory, the statement that a generalized goal of "do your best" will produce a higher output than specific, challenging goals is false. The theory actually posits that specific, challenging goals lead to higher performance than vague or easy goals. Goals should be Specific and significant to enhance their effectiveness.
Additionally, goals need to be Relevant and result-based, meaning they should be worthwhile and able to produce the desired outcome. Having a generalized goal may not provide a clear enough target which could result in lower motivation and output. Specific and challenging goals, on the other hand, are more likely to lead to increased effort and persistence, which often result in higher performance.