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

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

Quizplus · Accepted Answer

Point C represents a level of expenditure that exceeds the government's current budget, making it unattainable without additional resources.

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