Answer the following statement(s) true (T) or false (F)
1 The budget line is steep when X in inexpensive relative to Y.
2. When a consumer spends all of the income, it must be true that they are consuming a basket of goods on their budget line.
3. A consumer can not consume a basket of goods that lies closer to the origin than their budget line because they can not afford that basket
4. If the indifference curve is not tangent to the budget line, then we can be sure that the consumer is not at the optimum.
5. Marginal value equals relative price at the consumer's optimum, even if the optimum is a corner solution.
1. False
2. True
3. False
4. False
5. False
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