The Decision to Tip a Server Is A(n)

question 88

Multiple Choice

The decision to tip a server is a(n) :

• A)rational decision if the person leaving the tip is concerned about fairness.
• B)irrational economic decision because it reduces the economic payoff of the tipper.
• C)example of decision making using bounded rationality.
• D)example of behavior based on risk aversion.

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Definitions:

Nonexistent Person

A fictional or imagined individual who does not exist in reality.

Negotiable

Capable of being transferred or converted into goods, services, or money under terms agreeable to all parties involved.

Indorsement

The act of signing one's name on the back of a negotiable instrument, which transfers the property rights to another.

Indorsements

Written approvals or endorsements on documents, especially checks or promissory notes, to signify agreement, consent, or transfer.