Fact Pattern 32-1A (Questions A4-A5 Apply)

question 20

Multiple Choice

Fact Pattern 32-1A (Questions A4-A5 apply)
Janet and Julie work at ABC Interiors.Janet is a designer who works with cli?ents of ABC on interior design projects.ABC closely supervises all of its design?ers,and dictates their work schedules.Julie works part-time in the evenings cleaning the offices.
-Refer to Fact Pattern 32-1A.Julie is ABC's

• A)agent but not employee.
• B)employee and agent.
• C)employee or independent contractor,depending on whether ABC controls the details of her physical performance.
• D)independent contractor.

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Definitions:

Marginal Cost

The cost of producing one more unit of a good or service, often key to determining the optimal level of production.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes.

Nonexcludable

A characteristic of a good or service that prevents individuals who have not paid for it from being easily excluded from its consumption or use.

Nonrival

A characteristic of goods where one person's consumption does not diminish the ability of others to consume the same good.