An adjustment is made in wages that corresponds with the change in the cost of living. What this adjustment is called ?
Correct answer: D. Cost of living adjustment
- A. Free adjustment
- B. Cost effective adjustment
- C. Comparative adjustment
- D. Cost of living adjustment
Explanation
A cost-of-living adjustment, or COLA, raises wages or benefits to reflect changes in the prices of necessities. Its purpose is to preserve purchasing power when living costs rise.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
What is referred by cost push inflation ?
Interest payments and any principal repayments which are due on a country's external debt are known as ?
What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?
Amount of money needed to purchase the goods and services required to maintain a certain standard of living called ?
Name the system in which the means of production and distribution are privately or corporate owned and development is proportionate to the accumulation and reinvestment of profits which are gained in a free market ?
Mention the term which is used for the large-scale removal of individual and corporate investment capital and income from a country ?