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The Downward-Sloping Line in the Diagram Below Shows the Combinations

Question 118

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The downward-sloping line in the diagram below shows the combinations of health care and education expenditures that the government can afford with a given amount of tax revenue. The downward-sloping line in the diagram below shows the combinations of health care and education expenditures that the government can afford with a given amount of tax revenue.   FIGURE 1-6 Refer to Figure 1-6.Suppose the government's current spending is shown by point D.In this case, A) the government is not spending its total available budget for these two items. B) more education expenditures can be achieved only by sacrificing some existing health expenditures. C) more health expenditures can be achieved only by sacrificing some existing education expenditures. D) the government is spending more than its total budget. E) the prices of education and health care have increased beyond the government's ability to pay. FIGURE 1-6 Refer to Figure 1-6.Suppose the government's current spending is shown by point D.In this case,


A) the government is not spending its total available budget for these two items.
B) more education expenditures can be achieved only by sacrificing some existing health expenditures.
C) more health expenditures can be achieved only by sacrificing some existing education expenditures.
D) the government is spending more than its total budget.
E) the prices of education and health care have increased beyond the government's ability to pay.

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