Final answer:
Measuring innate capacity is difficult due to its inherent nature and the limitations of traditional intelligence tests, while developed performance is influenced by various external factors, making standardized testing potentially narrow in scope. Challenges in validly assessing both traits also relate to asymmetric information issues within selection processes.
Step-by-step explanation:
Measuring innate capacity and developed performance presents several difficulties. Innate capacity, often linked with intelligence, poses a challenge to measure because it is an inherent potential that may manifest differently under various circumstances. Traditional intelligence tests, developed to assess innate capacity, have been debated for their validity, questioning whether they capture a full spectrum of an individual's capabilities or if they are skewed towards particular skill sets, such as verbal and mathematical reasoning.
Similarly, measuring developed performance can be complex due to the influence of environmental factors, such as education quality, socioeconomic status, and personal experiences. Developed performance is also heavily influenced by an individual's dedication and opportunity to practice particular skills, making it a dynamic trait that can change over time. Furthermore, standardized tests, often used to gauge performance, may not account for all forms of achievement or creativity, and may lead to a narrow understanding of a person's abilities.
These measurements encounter asymmetric information challenges as well, especially when attempting to assess abilities or potential during selection processes, such as in the labor market. Employers may look for signals such as educational attainment or work experience, but these do not always accurately reflect an individual's innate abilities or developmental achievements.