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What do you think of the statement 'There is just so much money to go around'? Currently, the public wants better health care, better highways, better schools, and stronger national defense as it feels that it pays enough taxes to receive all these services. Each year, our political leaders at the local, state, and national levels struggle with decisions on how to spend the revenues from taxes. How does the budget process for the government resembles a production possibility curve and trade-offs? Specifically, consider the trade-off between spending on health care programs versus spending on the military. Are there increasing opportunity costs of spending more on health care than on the military? If so, what are some of the opportunity costs in both short run and long run? If health care services are entirely provided by the government, are the property rights of any group violated or harmed?

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