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

question 100

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

---

Definitions:

Indemnification

Payment for loss or damage suffered.

Fiduciary Relationship

A relationship based on trust such as exists between an attorney and a client, an agent and a principal, a guardian and a ward, a trustee and a beneficiary, or a director and a corporation.

Principal

A person who authorizes an agent to act on her or his behalf and subject to her or his control.

Independent Contractor

An individual who provides goods or services to another entity under terms specified in a contract or within a freelance arrangement, not as an employee.