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The correct answer is that such practices have both positive and negative effects and need to be exercised cautiously.

According to Woolfolk, labeling an 
exceptional student as bright or gifted is something that needs to exercised cautiously. On the one hand, labeling a student as exceptional has positives such as: boosting the student's confidence, morale and self-esteem, and encouraging them and motivating them to keep up their brilliant performance. However, the downside of labeling a student as exceptional is that it might put tremendous pressure and stress on the student to perform well, please others and meet their parents' and teachers' high expectations. 
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