Janice Operates a Tavern in Town Encountering Financial Difficulties Because

question 131

Multiple Choice

Janice operates a tavern in town encountering financial difficulties because of a downturn in the economy.She recently hired Bob as a full-time bartender.In a private meeting with Janice before his first shift,Bob agreed to accept less than minimum wage in exchange for full-time hours.Additionally,the agreement was reduced to writing.In these circumstances,if the agreement were subsequently reviewed by an employment standards officer:

• A)the agreement would be enforced given that it was on consent.
• B)the agreement would be enforced because Bob undoubtedly made up the shortfall in minimum wage in tips.
• C)the minimum standards found in provincial employment standards legislation cannot be waived by contract and Bob is therefore entitled to the full minimum wage.
• D)the agreement would be unenforceable because the employer operates a licensed establishment.
• E)the agreement would be enforceable because Bob received full-time hours in exchange for the reduction in pay.

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Definitions:

Bilateral Monopoly

A bilateral monopoly occurs when a market consists of a single supplier and a single buyer.

Monopsonist

A market condition where there is only one buyer or a dominant buyer for a product or service, giving them significant power over prices.

Bilateral Monopoly Wage Rate

refers to the wage rate determined in a market where there is only one employer (a monopoly) and one union or employee (a monopsony), necessitating negotiation to reach an agreement on wages.

Perfectly Inelastic Supply

A market condition where the quantity supplied remains constant regardless of changes in price.