Indifference curves cannot intersect each other as it would break down the indifference curve analysis. This is because the consumer would have more than one point on the indifference curve giving him a different level of satisfaction.

False.

The type of budget of the government are: 

True. 

The state budget is the government budget which is prepared for a given financial year for a single state. It is prepared by the respective state government. 

Budget is an annual financial statement of the government. It is a statement of the estimates of the government receipts and government expenditure during the period of the financial year. It unveils the fiscal policy of the government, focusing on growth and stability of the economy.  

Budget is a statement of the estimates of the government receipts and government expenditure during the period of the financial year. There are two main component of a budget: 

1. Receipts - It refers to the estimated money receipts of the government from all sources during the fiscal year.

2. Expenditure- It refers to the estimated expenditure of the government related to its developmental and non developmental programs during the fiscal year.

In India, the financial year or the fiscal year is from 1st April of a year to 31st March of the next year. All the government budget and policies are framed according to the fiscal year. 

The slope of the budget line is the is the ratio of the prices of good 1 and good 2.  Hence, the other 3 options are invalid as slope of budget line is only related to the prices of the two goods with a fixed income.

Greater the income with same prices would mean that the consumer can purchase more of both the goods on the budget line.

All points on the budget lines are points of optimal efficiency. Wherein the consumer is maximizing his utility by utilizing his entire income.  Points above the budget line are not attainable as it requires greater income. 

All points on the budget lines are points of optimal efficiency. Wherein the consumer is maximizing his utility by utilizing his entire income.  Points above the budget line are not attainable as it requires greater income. 

When the consumer is not spending all his income, he/she is inefficient with the current group of goods purchased. The optimal point for the consumer is the point at which the indifference curve is tangent to the budget line. 

This can be explained with an example, if you get a monthly salary of Rs. $20,000$, the salary will not change depending on the output you produce it depends on time the person involves.
It will remain even if you produce 10 units or even 20 units. 

A piece rate system is wherein the worker is paid a amount equal to the number of units he/she produces. For example if a worker is paid Rs.20 per unit and the worker produces 10 units. The worker will get paid a total of Rs.200 for producing the 10 units. 

A piece rate system is wherein the worker is paid a amount equal to the number of units he/she produces. For example if a worker is paid Rs.20 per unit and the worker produces 10 units. The worker will get paid a total of Rs.200 for producing the 10 units. 

The budget line shows the combination of two goods a individual can consume with his current income. Hence, it is equal to the ratio of prices between the two goods. 

In the indifference curve analysis the income remains constant in order to calculate the slope of the budget line which gives us one part o the consumer equilibrium. The budget line shows the combination of two goods a individual can consume with his current income. The other half is obtained by the indifference curve which is the marginal rate of substitution. 

The budget line shows the combination of two goods a individual can consume with his current income. Hence, it is equal to the ratio of prices between the two goods. 

Many substitute goods nowadays have relative pricing. This is especially true in competitive markets such as soaps, wherein the consumer would try to purchase one which is not very expensive. This is also true for the smartphone market. Also, the price of products is relative to the price of the raw materials used in making the product. 

Indifference curves are convex. This means the are downward sloping. Indifference curves will only be concave if the good are inferior. 

Option A is wrong as indifference curve has positive and negative slopes. 

The marginal utility of money changes depending on the inflation. Higher the inflation lower would be the utility of money as inflation reduces the value of the money and vice versa.

The consumer surplus for various helps us understand its value in the market. The consumer surplus for necessities is the highest and the prices of these goods are generally low and since they are essential for survival consumers would be willing to pay a high amount for these goods. 

A higher level of indifference curve shows higher level of satisfaction. The indifference curve would have shifted outwards due to reduction in price of goods or an increase in income which allows the consumer to purchase more goods which gives him a higher utility. 

If the indifference curve touches the y axis it would mean that the consumer is completely satisfied by consuming only one good. This is clearly wrong as on requires more than one good to be satisfied. 

If the indifference curve touches the x axis it would mean that the consumer is completely satisfied by consuming only one good. This is clearly wrong as on requires more than one good to be satisfied. 

The equilibrium is when the ratio of the price of goods is equal to the marginal rate of substitution. The ratio of price of goods comes from the budget line whereas the marginal rate of substitution is derived from the point of tangency on the indifference curve. 

The indifference curve theory has 5 major assumptions. These are as follows: 

P$ _{x}/P _{y}$ is the ratio of prices between good X and good Y which make one half if the indifference curve analysis. The value of ratio of price of goods is equal to the MRS which is obtained from the indifference curve. 

The ratio of prices between good X and good Y which make one half if the indifference curve analysis. The value of ratio of price of goods is equal to the MRS which is obtained from the indifference curve. This gives the consumers equilibrium 

An indifference curve shows all the possible combination of two goods with a constant level of income. All the points on an indifference curve give the same level of satisfaction as the consumer does reduce the efficiency of spending but just switches between his preference for the two goods.

In the indifference curve analysis we assume that a consumer has to choose between two goods and that his/her income is constant. If the price of either one or both the goods reduces, it means the consumer can purchase more goods. The result of an change in purchase of either good due to change in price of good with no change in income results in a substitution effect. This is the same as the income effect. This is because for normal goods both the income and substitution effect work in the same direction. 

The slope of price line is a ratio of prices of both the commodities 'X' and 'Y'. Thus, it is given by the prices of both the commodities.

Position of the price line would change with change in money income of the consumer, because money income determines the budget/purchasing power of the consumer.

The slope of price line is determined by the ratio of prices of both the commodities 'X' and 'Y'. It is the locus of all the bundles of 'X and Y' that can be bought with the given income of the consumer.

Balanced budget refers to a situation where the budget expenditure of the government on tax is equal to the budget revenue of the government from tax paid by the public.

Budgetary deficit also known as government deficit refers to a situation when the budget expenditure of the government are greater than the budget revenue of the government due to which the expenses exceed the revenue. 

Budget line shifts to right

False.