1. Rob has a budget of $120 and consumes ham (shown on the horizontal axis) and vermicelli (shown on the vertical axis). The price of ham is $6 per pound, and the price of vermicelli is $2 per pound. The vertical intercept of his budget line _____ is pounds of vermicelli; the horizontal intercept is _____ pounds of ham. The slope of the budget line is _____ pounds of _____ per pound of _____.

2. The budget line shows different combinations of two goods that have the same _____; an indifference curve shows the different combination of two goods that have the same _____.

3. As we move downward along an indifference curve, the slope of the curve in _____ absolute value, that is, the curve becomes _____ (steeper/ flatter). This reflects the assumption that consumers prefer _____ consumption to _____.

4. The marginal rate of substitution _____ (increases/decreases) as we move downward along an indifference curve.

5. As we move to a more northeasterly indifference curve, utility _____(increases/decreases).