The Three Main Tests Courts Use to Classify Employees and Independent

question 49

Multiple Choice

The three main tests courts use to classify employees and independent contracts are:

• A) the Master-servant rule, the Darden test, and the economic realities test.
• B) the Master-servant rule, the common-law agency test, and the GAP analysis.
• C) the common-law agency test, the Internal Revenue Service (IRS) 20-factor analysis, and the economic realities test.
• D) the Internal Revenue Service (IRS) 20-factor analysis, Myers Briggs test, and earned value analysis.

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Definitions:

Laws of Economics

Fundamental principles that govern economic behavior and interactions, such as supply and demand, cost-benefit analysis, and incentives.

Interest-Rate Cost-Of-Funds

The cost to banks or financial institutions of acquiring funds to lend, which can include interest paid on deposits or on borrowed funds.

Marginal Benefit

Additional value or satisfaction obtained by consuming an extra unit of a good or service.

Utility-Maximizing Rule

A principle in economics that states individuals allocate their resources to maximize their utility or satisfaction.