The Economics of Tipping: Checkpoint 1

Quick checkpoint - five questions on the economics of tipping.

Question 1 of 5 What is a tip?

A voluntary payment for service A government subsidy A bank fee A tax

It's beyond the price.

Question 2 of 5 Which country does not commonly tip?

Japan Mexico US Canada

Tipping can cause confusion.

Question 3 of 5 What did the CCPA say about automatic service charge in 2022?

It is mandatory It is an unfair trade practice if compulsory It must be 20% It is a tax

Customers can ask to remove it.

Question 4 of 5 What is 'tip creep'?

A bank rule A crawling tax A type of loan Growing prompts and defaults that push people to tip more

Also called tipflation.

Question 5 of 5 What is the federal cash wage for tipped US workers?

$0 $200 an hour $20 an hour $2.13 an hour

Employers must top up if tips fall short.

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