Paloma Is a 16-Year Old Who Babysits for a Local

question 7

Multiple Choice

Paloma is a 16-year old who babysits for a local family on an occasional basis.During a calendar year,she earned $1,250 in babysitting wages.What is true about Paloma's wages?

• A) The family must treat her as a domestic employee and abide by FLSA regulations.
• B) Paloma does not earn enough to be considered a domestic employee so FLSA rules do not
• Apply.
• C) Paloma is not considered an employee,but certain FLSA provisions apply.
• D) Since the family conducts no interstate commerce,FLSA provisions cannot apply.

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service demanded at different prices.

Natural Monopolist

A single firm that can supply a good or service to an entire market at a lower cost than could two or more firms, leading to a natural monopoly situation.

LRAC Curve

The Long-Run Average Cost curve, showing the lowest average cost at which a firm can produce any given level of output in the long run when all inputs are variable.

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain period of time.