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
-Behaviour in free- market economies is
A)based primarily on custom and habit.
B)determined by a central authority.
C)random and unpredictable.
D)mostly affected by elements of tradition and government command.
E)mostly directed by self interest.

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
-Behaviour in free- market economies is
A)based primarily on custom and habit. 
B)determined by a central authority. 
C)random and unpredictable. 
D)mostly affected by elements of tradition and government command. 
E)mostly directed by self interest.

Quizplus · Accepted Answer

The behaviour in free-market economies is mostly directed by self-interest, as individuals and firms make decisions based on their own desires and incentives.

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