10. Graphically an indifference curve (IC) is expressed using contour lines. The ICs represent loci of points at equal height on a consumption surface defined above a plane on which time 1 and time 2 consumption standards are measured. a. True b. False . 1 1. MRS between present and future consumption is the slope of an IC at any point and indicates the consumption for trading off expenses at the present time against consumption in the future. a. True b. False 12. If p is the time 1 price of $1 to be delivered at time 2, we can say alternatively that $1 is the time 1 price of a sum 1/p to be delivered at time 2. a. True b. False 13. The sum initially borrowed or lent decreases if individuals prefer to spend money now rather than later. a. True b. False 14. The relation between incomes and wealth is shown by the market opportunity line of equal present values. a. True b. False 15. The present value of optimal consumption choices is just equal to initial wealth. a. True b. False