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- 5
-Refer to Figure 1- 5. If the government's spending on health and education is given by point B, a move to point A must involve
A) more spending on education.
B) less spending on education.
C) less spending in total.
D) less spending on health.
E) zero opportunity cost.

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- 5
-Refer to Figure 1- 5. If the government's spending on health and education is given by point B, a move to point A must involve
A) more spending on education. 
B) less spending on education. 
C) less spending in total. 
D) less spending on health. 
E) zero opportunity cost.

Quizplus · Accepted Answer

Moving from point B to point A involves a decrease in spending on education (as we move along the x-axis), while keeping spending on health constant (at the same point on the y-axis). Therefore, the correct choice is B: less spending on education.

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