The economic Reality Test is a test used by courts to further determine between an employee and an independent contractor. They use this mainly to determine if payroll taxes should have been paid on a person working for a business. If the contractor end up being classified as an employee, the business owes payroll taxes on the money paid to that person. If the person is determined to be an independent contractor, then the person owes income taxes on the money paid to them.
# Should an economic model describe reality exactly?
money laundering
Absolutely not.
should an economic test be applied in judging the activities of a corporation
Recession! I had this for a test.
# Should an economic model describe reality exactly?
money laundering
Absolutely not.
should an economic test be applied in judging the activities of a corporation
Karl Marx argued that everything in society, including culture, politics, and institutions, is ultimately determined by economic factors. According to Marx, the economic system shapes all other aspects of society.
Negative or inverse
The USSR
Recession! I had this for a test.
Nothing
Reduced need for skilled workers.
a false positive!
Completeness means that all the information that is needed to faithfully represent economic reality must be included.