In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can change expenditure by ________ one trillion dollars

If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to

a. increase the availability of government health insurance. b. invest in biotechnology to determine the genetic factors that improve health. c. improve life-style decisions by reducing smoking, alcohol consumption, and drug use. d. improve access to medical care. e. improve overall educational attainment so people can better follow the advice from the medical community.

People often choose to specialize and trade because:

A. it will allow them to enjoy more goods than they can create on their own. B. they can consume a bundle of goods on their production possibilities frontier. C. it always allows them to produce at a point beyond their own production possibilities frontier. D. they can take advantage of another nation’s poor choices.