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.If the government's spending on health and education is given by point B,a move to point A must involve
A)less spending on education.
B)less spending in total.
C)more spending on education.
D)zero opportunity cost.
E)less spending on health.

Question

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.If the government's spending on health and education is given by point B,a move to point A must involve
A)less spending on education. 
B)less spending in total. 
C)more spending on education. 
D)zero opportunity cost. 
E)less spending on health.

Quizplus · Accepted Answer

Moving from point B to point A on the downward-sloping line would involve a decrease in spending on education, since the line represents the maximum amount that can be spent on both education and health care with a given amount of tax revenue. Point A represents a lower total amount of spending than point B, but the question asks specifically about the change in education spending. Moving from point B to point A would also involve an opportunity cost, since the government would have to give up some health care spending in order to increase education spending.

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