Many fast-food restaurants have signs on their cash registers that read, "Your meal is free if the cashier does not give you a receipt". What might be the purpose of such a sign? Hint: there is a moral hazard problem here
What will be an ideal response?
In a fast-food restaurant it would be quite easy for the cashier to not ring up the purchase and simply pocket the cash. The sign is likely meant more as a warning to their employees to not steal. It is also a fairly cheap way of having someone else (the customer) do the monitoring of their employees behavior.
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Which of the following would most likely NOT be taught in a macroeconomics course?
A) changes in the health care industry B) factors leading to different economic growth rates among countries C) government actions in response to a slowdown in the economy D) the relationship between the inflation rate and the unemployment rate
The liquidity-preference model was first introduced in:
A. 2008 by Ben Bernanke. B. 1936 by John Maynard Keynes. C. 1776 by Adam Smith. D. 1970 by John Kenneth Galbraith.