Aiden Performs Services for Lucas

question 77

Multiple Choice

Aiden performs services for Lucas. Which, if any, of the following factors indicate that Aiden is an employee, rather than an independent contractor?

• A) Aiden provides his own support services (e.g., work assistants).
• B) Aiden obtained his training (i.e., job skills) from his father.
• C) Aiden is paid based on hours worked.
• D) Aiden makes his services available to others.
• E) None of these.

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Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a variable input, holding all other inputs constant.

Least Costly

The most economical or budget-friendly option among a set of alternatives.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, indicated by a greater change in quantity demanded.

Labor Costs

The total amount of money businesses have to spend on paying their employees, including wages, salaries, and benefits.