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. The levels of health and education expenditures at point C
A) are equal to those of point A and point B.
B) are less than at point D.
C) could be achieved if the prices of health and/or education increased.
D) are more cost- effective than those at points A, B, and D.
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- 5
-Refer to Figure 1- 5. The levels of health and education expenditures at point C
A) are equal to those of point A and point B. 
B) are less than at point D. 
C) could be achieved if the prices of health and/or education increased. 
D) are more cost- effective than those at points A, B, and D. 
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.

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