Fact Pattern 32-2 Faye Works as an Administrator and Receptionist for Garage Door

question 72

Multiple Choice

Fact Pattern 32-2
Faye works as an administrator and receptionist for Garage Door Store. The store withholds federal taxes from Faye's pay, and controls the methods and details of the performance of her work. Faye is not authorized to modify the prices or other terms of a sale at the store. Homer installs Garage Door products at the buyers' locations.
-Refer to Fact Pattern 32-2. Garage Door hires Janitorial Service Company to clean the store. Garage Door gives Janitorial Service instructions as to what needs to be cleaned and when. With respect to Garage Door, Janitorial Service is​

• A) ​an independent contractor.
• B) ​an employee only.
• C) ​an employee and agent.
• D) ​an principal.

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Definitions:

Price-Discriminate

The practice of charging different prices to different consumers for the same good or service, based on factors like location, buying habits, or willingness to pay.

Higher Prices

Typically the result of increased demand or reduced supply, leading to a rise in the cost of goods and services.

Deadweight Loss

An economic inefficiency that occurs when the equilibrium for a good or service is not achieved or is not allocatively efficient.

Monopoly

A market structure where a single firm controls the entire market for a good or service, with no close substitutes available.