Task 1: General understanding I. Are the following statements true or false? Justify your answer with economic theory. a. Economics is primarily about money. b. The following product function is concave: X(N) = N where 0 < < 1. c. The marginal income of a company shows how much more the company can produce if the income rises by 1 crown. d. Assume Mona's MSB = 4. That means Mona is willing to give up 4 units of good 2 for one extra unit of good 1. II: Explain the following terms: a. Utility function b. Marginal utility c. Marginal Substitution Fraction (MSB) d. For the consumer, the relationship between the marginal willingness to pay (MBV) and willingness to pay (BV) e. For the company, the relationship between the marginal cost (GK) and the variable costs (VK) III. Take as a starting point a falling demand curve in a price-quantity diagram. a. Show how the demand curve is affected by increased income among consumers if the good is normal, and inferior. b. Show how the demand curve is affected by an increased price of an alternative good