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

question 56

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 should spend its total budget so as to get to point B,since more health spending and more education spending are both clearly desirable.
• B)the prices of education and health care have increased beyond the government's ability to pay.
• C)more education expenditures can be achieved only by sacrificing some health expenditures.
• D)the government is not spending its total budget.
• E)more health expenditures can be achieved only by sacrificing some education expenditures.

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Definitions:

Terms

Conditions and stipulations that define an agreement or contract.

Discounts

Reductions applied to the selling price of goods or services for promotions, bulk purchases, or other reasons.

Sold

Refers to the act of exchanging a product or service for money or other compensation; a completed transaction.

Discount

A reduction from the usual cost of something, usually provided as an incentive to increase sales.