The Cost of Living Adjustments (COLA)are Featured in Many Labour

question 54

Multiple Choice

The cost of living adjustments (COLA) are featured in many labour contracts and pension plans. They:

• A)mandate adjusting income upwards by half the increase in prices over the respective period.
• B)naturally lead to both income and substitution effects being present.
• C)lead to a substitution effect and no income effect.
• D)lead to an increase in compensation via a substitution effect.

---

Definitions:

Competitive Molecules

Molecules that compete with each other for binding sites on enzymes or receptors in biological systems.

Sodium-Potassium Pump

A cell membrane protein that uses ATP to move sodium ions out of the cell and potassium ions into the cell, essential for cellular function.

Plasma Membrane

The phospholipid bilayer that surrounds cells, controlling the movement of substances in and out of the cell, thereby maintaining its internal environment.

Actively Transports

The process of transporting materials through cellular barriers against the direction of concentration differences, necessitating the use of energy.