The rate of time preference is positive

The rate of time preference is positive
 a. only when interest rates are positive
  b. because interest rates are positive
  c. only when people save
  d. because people save
  e. because people prefer goods now to the same goods later

QUESTION 2

When a country establishes trade restrictions, domestic producers of goods that compete with imported goods
 a. always lose in the short run
  b. always gain in the long run
  c. may lose in the long run if protection stifles innovation and leaves the industry vulnerable
  d. may gain in the short run because wages will fall in that industry
  e. usually lobby against such restrictions

QUESTION 3

Goods and activities typically are more highly valued the sooner they can be enjoyed, other things constant,
 a. only when interest rates are positive
  b. because interest rates are positive
  c. only when people save
  d. because people save
  e. because people have positive rates of time preference

QUESTION 4

Which of the following does not explain why U.S. wage rates are higher than wage rates in developing countries?
 a. better education and training of workers in the United States
  b. greater availability of capital in the United States
  c. use of the latest technology in the United States
  d. higher productivity in the United States
  e. unstable business conditions in the United States

QUESTION 5

For the typical consumer, present consumption is
 a. preferred to future consumption
  b. not preferred to future consumption
  c. preferred to future saving
  d. not preferred to future saving
  e. financed out of present saving

QUESTION 6

Low wages may be traceable to all of the following except one. Which is the exception?
 a. low productivity
  b. too much saving
  c. unstable business climate
  d. poor education and training
  e. lack of adequate physical capital supplied to labor

QUESTION 7

Increased saving today means
 a. more consumption today and in the future
  b. less consumption today and in the future
  c. more consumption today and less in the future
  d. less consumption today and more in the future
  e. more income today, but the net effect of increased income on the balance between consumption and saving cannot be determined in advance

QUESTION 8

Which of the following is not true regarding the argument for protection as a way of maintaining jobs and wage levels?
 a. Wages may be only a small fraction of total production costs.
  b. High wages do not necessarily imply high labor costs when productivity is taken into account.
  c. U.S. workers are among the most productive in the world partly because they are well educated and trained compared to other countries.
  d. U.S. workers are highly productive partly because they are provided with abundant supplies of machines and physical capital.
  e. It is not possible that the U.S. wages, even when supported by high U.S. output per worker, can render U.S. products competitive with low-wage countries.

QUESTION 9

Because present consumption is more highly valued higher than future consumption, interest is paid.
 a. True
  b. False