Economics Flashcards
(5 cards)
1
Q
Human capital
A
economic value of a workers total experience and skills
2
Q
Behavioural economics
A
It draws on psychology and economics to explore why people sometimes make irrational decisions, and why and how their behavior does not follow the predictions of economic models.
3
Q
Mincer Earnings function
A
a function that explains income as a function of experience and education
4
Q
Bounded rationality
A
the idea that rationality is limited when individuals make decisions, and under these limitations, individuals may often select a decision that is satisfactory rather than optimal.
5
Q
Signaling
A
conveying of insider information in order to adjust stocks etc
