The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction

If new firms enter a perfectly competitive industry, the

a. market supply curve will shift to the left, market price will fall, and industry output will increase b. market supply will shift to the left, market price will rise, and the industry output will increase c. market demand will shift to the right, market price will increase, and market output will increase d. market supply will shift to the right, market price will fall, and market output will increase e. market supply will shift to the right, market price will increase, and market output will decrease

Which of the following will definitely reduce a budget deficit and provide fiscal restraint?

A. Greater government spending and lower taxes. B. Greater government spending and higher taxes. C. Lower government spending and lower taxes. D. Lower government spending and higher taxes.