How does labeling theory describe the effect of labels given to people?

Labeling theory asserts that the labels ascribed to individuals can profoundly influence both their self-perception and the way others respond to them. When a person is labeled, it can shape their identity and how they view themselves. For instance, being called a "delinquent" might lead an individual to internalize that label, thus impacting their self-image and potentially leading them to act in accordance with that label.

Simultaneously, labels affect external responses; society’s reaction to someone labeled a criminal, for example, may lead to stigmatization and discrimination, further reinforcing negative behavior or reinforcing a criminal identity. The dual impact—on self-image and external responses—demonstrates the comprehensive nature of labeling theory and highlights its relevance in social interactions and behavioral outcomes.

The other choices do not encompass the full scope of the theory; they either minimize the impact on self-image, solely attribute influence to external perceptions, or limit the effect to peer relationships, failing to address the broader societal context.