1. Please state whether each of the following is True or False and why (in one or two sentences)?
   1. The normative theory of utility maximization developed by neoclassical economists in the 1870s has its roots in the positivist philosophy of utilitarianism.
   2. Consumers' surplus and producers' surplus assume a constant marginal utility of money that is the same for all buyers and sellers.
   3. Changes in price cause parallel shifts of the budget line whereas changes in income cause rotations of the budget line.
   4. Indifference curves slope downwards because consumers are willing to make tradeoffs, and they are bowed towards the origin because consumers experience diminishing marginal satisfaction as they consume more of a good.
   5. When preferences are endogenous, the individual demand curve cannot be derived because a change in price causes preferences to change.