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.

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.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.

Quizplus · Accepted Answer

Point C represents a level of expenditure that exceeds the government's current budget, making it unattainable.

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