Which of the Following Is True Regarding an Independent Contractor's

question 17

Multiple Choice

Which of the following is true regarding an independent contractor's entitlement to fringe benefits offered by a principal?

• A) An independent contractor is generally eligible for the same fringe benefits provided to employees.
• B) An independent contractor is generally eligible for the same medical insurance provided to employees but not for retirement benefits.
• C) An independent contractor is generally eligible for the same retirement benefits provided to employees but not for medical benefits.
• D) An independent contractor is not generally eligible for the fringe benefits provided to employees.

---

Definitions:

Prices Constant

An assumption in economic analysis that prices remain unchanged over a specific period, allowing for the examination of other variables' effects without price fluctuations.

Diminishing Marginal Rate

The principle that as the quantidade of a variable input increases, with all other inputs fixed, a point will be reached where the additions to output will begin to decrease.

Substitution

The economic principle describing how consumers or producers replace one good or service with another in response to changes in price or other factors.

Substitution Effect

The substitution effect describes a change in consumption patterns due to shifts in relative prices, where consumers prefer cheaper alternatives when the price of a good rises, keeping their utility level constant.