The Owner of a Small Sporting Goods Store Wants to Avoid

question 38

Multiple Choice

The owner of a small sporting goods store wants to avoid hiring drug users. He checks with his attorney and finds that

• A) drug testing before hiring is legal.
• B) drug usage is considered a disability and is not grounds for rejection.
• C) no economical tests are available to check for drug usage.
• D) the Americans with Disabilities Act of 1990 flatly prohibits drug testing for jobs in private businesses.

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Definitions:

Returns To Scale

The rate at which output increases as inputs are increased proportionately in the production process, indicating economies or diseconomies of scale.

Downward-Sloping

A term used to describe a graph line that decreases in height as it moves from left to right, commonly associated with demand curves in economics, indicating that quantity demanded decreases as price increases.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at that price.

Monopsony

A market situation where there is only one buyer for a product or service, giving the buyer substantial control over the market price.