Question

In the context of wage increases, what does the abbreviation C.O.L.A. stand for?

a) Cost of Labor Adjustment
b) Current Offering for Labor Advancement
c) Consumer-Ordered Labor Adjustment
d) Cost-of-Living Adjustment

Answer 1

The abbreviation C.O.L.A. stands for Cost-of-Living Adjustment. In the context of wage increases, a cost-of-living adjustment (COLA) is an increase in wages or salaries, usually based on changes in the consumer price index (CPI) or other measures of inflation. COLAs are designed to help workers maintain their purchasing power as the cost of living increases.

Step-by-step explanation:

The abbreviation C.O.L.A. stands for Cost-of-Living Adjustment.

In the context of wage increases, a cost-of-living adjustment (COLA) is an increase in wages or salaries, usually based on changes in the consumer price index (CPI) or other measures of inflation. COLAs are designed to help workers maintain their purchasing power as the cost of living increases.

For example, if inflation is 5%, a worker with a COLA wage contract might receive an automatic wage increase of 5%, ensuring that their wages keep up with the rising cost of living.