"Your Buzz On-The-Go" Is a Franchisor of a Drive-Through Fast

question 74

Multiple Choice

"Your Buzz On-the-Go" is a franchisor of a drive-through fast food chain of stores where all drinks and food contain caffeine.For example,even their breakfast burritos contain chocolate.The franchisor requires its franchisees to purchase all of the food items and paper supplies (paper bags,napkins,packaging,etc.) from a supplier that is owned by the franchisor.Mike,a franchisee,would prefer purchasing these items from less expensive sources.Most likely,what is legality of the requirement to purchase these items from the franchisor?

• A) The arrangement is illegal for both the food products and the paper items.
• B) The arrangement is legal for the food products, but illegal for the paper items.
• C) The arrangement is illegal for the food products, but legal for the paper items.
• D) The arrangement is legal for both the food products and the paper items.
• E) The arrangement is legal for the food products if it can be shown that they are not unique, but illegal for the paper items.

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Definitions:

Phillips Curve

Curve showing inverse relationship between the unemployment rate and the rate of inflation.

Laffer Curve

Shows that at very high tax rates, very few people will work and pay taxes; therefore government revenue will rise as tax rates are lowered.

General Price Level

indicates the average of the current prices of all goods and services in the economy at a specific time.

Money Supply

The aggregate of all funds accessible in an economy, counting cash, coins, and checking and savings account balances, at a certain time.