A severe water shortage recently hit country X. The government wants to ensure that drinking water remains affordable to the public. What policy or steps should the government undertake? A. Decrease spending on water reforms. B. Introduce a price floor on drinking water. C. Increase taxes for working individuals. D. Introduce a price ceiling on drinking water. E. Increase taxes for producers of drinking water.

Suppose that, on the basis of a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. now consider the following statement: “through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus ‘move outside its production possibilities curve.’”