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 health.
B)zero opportunity cost.
C)less spending on education.
D)less spending in total.
E)more spending on education.

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 health. 
B)zero opportunity cost. 
C)less spending on education. 
D)less spending in total. 
E)more spending on education.

Quizplus · Accepted Answer

Moving from point B to point A involves less spending on education, as the downward-sloping line represents the tradeoff between spending on health care and education given a fixed budget. Moving to point A means spending more on health care and less on education.

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