A Restaurant Owner Hires a Waiter to Serve Food to Customers

Multiple Choice

A restaurant owner hires a waiter to serve food to customers and clear the tables. The owner wants the waiter to be prompt in bringing out the food and clearing the table once the guests are finished with their meal. The waiter is paid a salary and cannot accept tips. The waiter would prefer to check their Facebook account and take their time waiting the tables. If the waiter does spend considerable time checking their Facebook while the owner is not at the restaurant, which of the following is true?

A) This is an example of the principal- agent problem and the waiter is the principal and the owner is the agent.
B) This is an example of adverse selection and the waiter is the agent and the owner is the principal.
C) This is an example of the principal- agent problem and the waiter is the agent and the owner is the principal.
D) This is an example of the lemons problem and the waiter is the agent and the owner is the principal.