-Refer to Figure 4

question 16

Multiple Choice

-Refer to Figure 4.1, the increase in output from point A to B is less than the increase in output from point B to C because

• A)more workers always produce more.
• B)better workers are usually hired after the earlier ones .
• C)a small number of workers cannot take as good advantage of the division of labor as a larger number.
• D)eventually workers are up against the fact that there are fixed inputs and more workers do not add as much.

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Definitions:

Control Over Work

The authority to direct and manage how a job or task is executed.

IRS Determination

An official decision made by the Internal Revenue Service on a specific tax matter.

Principal-Agent Relationship

A legal relationship where one party (the agent) acts on behalf of another party (the principal) in business transactions.

Power to Bind

The authority granted to an agent or representative to enter into contracts or agreements that legally bind the principal to the terms.