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

question 113

Multiple Choice

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.The levels of health and education expenditures at point C

• A)are less than at point D.
• B)are equal to those of point A and point B.
• C)are more cost-effective than those at points A,B,and D.
• D)could be achieved if the prices of health and/or education increased.
• E)are not attainable with the government's current budget.

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