Economists Refer to Expenditures on Training, Education, and Skill Development

question 28

Multiple Choice

Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as

• A) overhead expenditures.
• B) investments in human capital.
• C) sunk expenditures.
• D) social capital.

Explain how the presence of others affects individual performance through concepts like social facilitation and social loafing.

Differentiate between the central and peripheral routes to persuasion.

Recognize the role of social norms, roles, and contexts in shaping individual and group behavior.

Understand the primary goals and components of experimental design.

---

Definitions:

Monetary Multiplier

The ratio of the change in the money supply to the change in reserves, indicating the potential increase in money supply through the banking system.

Legal Reserve Ratio

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out, often set by central banks.

Reserve Requirement

A regulation that sets the minimum reserves each bank must hold to customer deposits and notes, intended to ensure bank liquidity and financial stability.

Excess Reserves

Funds held by banks over and above the legally mandated requirements to back deposits.