When a moving stimulus is presented at a specific temporal frequency, both steady-state responses and induced gamma activity may be elicited in the electroencephalogram. The electroencephalogram was recorded when study participants viewed random dot kinematograms under three conditions: coherent motion, incoherent motion and stationary. Dot position was changed at a rate of 9.3 Hz in the coherent and incoherent conditions. Induced power at 40 Hz was increased during coherent motion compared with the other conditions. In contrast, the steady-state response at 9.3 Hz showed a trend for increased power during the incoherent condition. These results suggest that steady-state responses to moving stimuli reflect sensory activation, while the induced gamma activity indexes perceptual processes.