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

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:

Market Approval

The official authorization for a product to be sold in a specific market, often referring to regulatory approval for pharmaceuticals or medical devices.

Substitute Products

Goods or services that serve as alternatives to others, offering consumers options when making purchase decisions.

Pharmaceutical Products

Medications and drugs developed for medical use to diagnose, treat, or prevent diseases.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, indicating a return above the firm's opportunity costs.