Which of the Following Is a Reason a Person Would

question 70

Multiple Choice

Which of the following is a reason a person would prefer to be an independent contractor?

• A)An independent contractor pays only 7.65 percent FICA tax.
• B)An independent contractor can deduct expenses directly from business income.
• C)An independent contractor can deduct his or her health insurance directly from business income.
• D)An independent contractor can always participate in the retirement plan of the business for which he or she is performing work.

---

Definitions:

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output supplied by all producers in the market.

Constant Costs

Costs that remain stable in total over a wide range of activity levels but may vary per unit.

Maximizing Profits

Striving to achieve the highest possible profit level by adjusting production levels, pricing strategies, or operational efficiencies.

Total Revenue

The sum of all earnings a company acquires from selling goods or offering services over a specific timeframe.