Question 1 Which of the following statements are correct? A. Indifference curves for an individual can never intersect. B. Indifference curves are downward sloping because the marginal utility of the individual for each good is decreasing. C. Put movies on the vertical axis and pizzas on the horizontal. If a consumer's indifference curves for movies and pizzas are steep. then the consumer would willingly give up one movie only in return for more than one pizza. D. Put movies on the vertical axis and pizzas on the horizontal. If a consumer's indifference curves for movies and pizzas are steep. then the consumer would willingly give up one movie in return for less than one pizza. E. Whenever the indifference curves are concave to the origin the optimum is at a comer solution. Question 2 Last year the number of cinema tickets I bought equalled the number of concerts I attended. This year the price of cinema tickets has fallen by 1 GBP. the price of concerts has risen by exactly the same amount. but my income has remained unchanged. Which of the following statements are correct? A. I cannot be worse off this year than last. B. I cannot be better off this year than last. C. This year lam exactly as well off as l was last year. D. Without any more information we cannot tell wt'lether I am better or worse off. Question 3 Last year the number of cinema tickets I bought was higher than the number of concerts I attended. This year both prices, of cinema tickets and of concerts, have risen by exactly 10%, and I received a bonus of 10% to my income. A. As I can still purchase the same bundle of goods ldid last year. lmust be strictly better off this year. B. As I cannot purchase the same bundle of goods I did last year, I must be strictly worse off this year. C. I can still purchase the same bundle I did last year. but I might end up purchasing a different bundle this year. D. As I cannot purchase the same bundle of goods I did last year, I will denitely purchase a different bundle of goods this year. E. I can still purchase the same bundle I did last year, and I will end up purchasing the same bundle this year. F. Without any more information we cannot tell whether I will end up purchasing the same bundle this year