T or F questions

1. College education typically yields higher rates of return for both the individual and society that are yielded by grammar school or high school educations.

2. If the income effect of a wage increase is larger than the substitution effect of a wage increase then the supply curve of labor bend backward, which indicate lower quantity of labor supplied as the wage increase.

3. If the income effect of a wage increase is larger than the substitution effect of a wage increase then the supply curve of labor bend backward, which indicate lower quantity of labor supplied as the wage increase.

4. Markets wages that are set below the intersection of where the supply and demand curves for labor create surpluses of workers and pressures for excessive unemployment.

5. An individual's labor supply is positively sloped if the income effect is more powerful than the substitution effect.