A payment that is periodically adjusted in proportion to a price index such as the CPI is known as a(n)

Production possibilities curves:

A) illustrate the production choices available to an economy. B) assume full employment but not maximum efficiency. C) assume maximum efficiency but not full employment. D) are used to illustrate the law of decreasing opportunity costs.

Whenever a buyer and a seller agree to trade

A) they must have identical opportunity costs in producing their respective products. B) the agreement is made based on absolute advantage. C) one party will always be worse off. D) both must believe they will be made better off.