Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate.
A rational consumer cannot be indifferent between the {x, y} consumption bundles {2, 8} and {3, 4} and also the bundles {2, 8} and {4, 5}. [Hint: Use a consumer theory diagram to illustrate your answer.
A household may be made better off and is never worse made worse off if it receives a cash transfer of equal value to a housing voucher (a transfer that can only be spent on housing).
