Economic Variables That Generally Move in Tandem with the Overall

question 5

Multiple Choice

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

• A)leading indicators.
• B)coincident indicators.
• C)lagging indicators.
• D)none of the above.

Understand the effects of minimum wage laws on employment and labor supply.

Differentiate between the human-capital and signaling theories of education.

Explain the factors contributing to the earnings gap between individuals with different levels of education.

Identify the characteristics that lead to a "superstar" phenomenon in earnings.

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Definitions:

Psychological Phenomena

Psychological phenomena refer to the wide range of experiences, behaviors, and processes that originate in the mind or are influenced by mental functions.

Watson

John B. Watson is known as the founder of behaviorism, a theory of psychology that emphasizes observable behaviors over internal mental processes.

Learning

Learning is the process through which experience or practice leads to a relatively permanent change in behavior or potential behavior.

Psychological Origin

The underlying psychological factors or causes that contribute to the development or behavior of an individual.