Section 1: True/False, if false, explain (15 points). Each question is worth 3 points. 1. An increase in non labor income due to a rise in the value of stocks and bonds will cause both an income and a substitution effect. 2. Present-oriented people discount future earnings at a higher rate than forward-looking people. 3. Workers with relatively high levels of natural ability are quite likely to attend college. This can cause a downward bias when estimating educational returns because other benefits from college are ignored. 4. In the labor market, signals are any personal characteristic viewed as an indicator of productivity. 5. An increase in the average age of workers would cause quit rates to decline.