In an Effort to Discover Whether or Not Workers Understand

question 31

Multiple Choice

In an effort to discover whether or not workers understand inflation,economist Robert Shiller conducted a survey. When asked about the effect of general inflation on their wages or salary,the most popular response coming from workers was:

• A) "My wages usually catch up to rising prices within a year."
• B) "The price increase will create extra profit for my employer.... There will be no affect on my pay."
• C) "My wages have always increased by more than the rate of inflation."
• D) None of the above are correct.

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Definitions:

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Adequate Clothing

Apparel that sufficiently meets the requirements for weather conditions, social norms, and functionality.

Self-transcendence

A psychological state characterized by the expansion of self-boundaries, involving the experience of going beyond the personal self into broader aspects of human experience.

Self-actualization

A process of fulfilling one's potential and achieving the highest level of human functioning.