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

question 118

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.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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Definitions:

Collective Bargaining

The process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment.

Arbitrating

The process of settling a dispute through an impartial third party, whose decision is usually binding.

Negotiations

The process of discussing terms between two or more parties to reach a mutual agreement or resolve a conflict.

Third-Party Assistance

Help or support provided by a party who is not directly involved in a contract or mutual agreement but affects or assists the parties involved.