Cost-Of-Living Adjustment Clauses (COLAs)

question 62

Multiple Choice

Cost-of-living adjustment clauses (COLAs)

• A)invalidate the "rule of 70."
• B)apply only to demand-pull inflation.
• C)increase the gap between nominal and real income.
• D)tie wage increases to changes in the price level.

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Definitions:

Negligence Suit

A legal action brought against someone accused of failing to exercise a reasonable standard of care, resulting in harm or damage to another.

Damages

Compensation sought or awarded in a legal proceeding as a remedy for breach of contract or tortuous act.

Fair Labor Standards Act

The Fair Labor Standards Act is a United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting employees in the private sector and in federal, state, and local governments.

Double-Pay

A situation where an individual receives twice the amount of payment that is due for a particular period or task, often due to an error or as a special compensation.