The Purpose of a Cost of Living Adjustment (COLA) Is

question 64

Multiple Choice

The purpose of a cost of living adjustment (COLA) is:

• A) to give employees a 3% pay adjustment each year to adjust for increasing housing costs.
• B) to provide money employees can set aside for their retirement funds.
• C) to offset the increases in the price of goods and services employees purchase to prevent wages from lagging in the market.
• D) to offset stock market declines so employees have money to withdraw when they incur large losses.
• E) to provide a performance reward to those employees that exceed productivity expectations.

---

Definitions:

Joseph LeDoux

A neuroscientist known for his research on survival circuits, including those that generate fear and anxiety responses.

Emotional Reactions

Immediate and spontaneous responses in feelings to stimuli or situations.

Interpretation

The act of explaining, reframing, or giving meaning to a particular phenomenon, situation, or piece of information.

Robert Zajonc

A psychologist known for his work on the mere-exposure effect and social facilitation.