Final answer:
The statement is false. Aristotle's concept of 'eudaimonia' encompasses much more than cognitive contemplation and refers to the highest human good, encompassing living well and fulfilling one's purpose through the cultivation of virtues.
Step-by-step explanation:
The statement "Virtue is important for achieving not only moral well-being but also happiness and inner harmony. Aristotle referred to this sense of psychological well-being as cognitive contemplation." is false. Aristotle did emphasize the importance of virtue for achieving eudaimonia, which is often translated as 'happiness' or 'flourishing', rather than merely 'cognitive contemplation'. According to Aristotle, eudaimonia is the highest human good and the end toward which all human activity is directed. Eudaimonia is achieved through the cultivation of virtues, which are excellent states of character that enable an individual to perform their function well.
In Aristotle's ethical framework, the concept of eudaimonia is broader than just psychological well-being or happiness; it encompasses living well and fulfilling one's purpose. Developing virtues through habit and reasoning enhances one's ability to live a fulfilling life, contributing to both personal welfare and the welfare of the community. Thus, virtuous actions in the Aristotelian sense should "accord with the correct reason" and be chosen voluntarily from a firm and consistent character.
Moreover, Aristotle posits that human social and political nature plays a significant role in virtuous development and eudaimonia. Thus, in addition to virtues, external factors such as success, friendships, and other goods also contribute to living a flourishing life.