In an Effort to Discover Whether or Not Workers Understand

question 175

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 is correct.

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Definitions:

Bad Debts

Accounts receivable that are considered to be uncollectible, representing losses to the company.

Promissory Note

A monetary tool that includes a formal pledge from one entity to another to pay a certain amount of money, either when asked or on a predetermined date in the future.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Pledges Receivables

Amounts promised to be paid by donors to a fundraising organization or a charitable cause.