With ATMs, it is possible to retrieve cash from the bank at any time. One hundred years ago, one could only get cash from the bank during business hours, say, 9 am to 3 pm. The present availability of 24-hour service has arisen because:
A)flexibility was not valued 100 years ago.
B)it was impossible to provide 24-hour service 100 years ago.
C)the cost of providing 24-hour service is much lower today.
D)government forced banks to become more convenient.

Question

Quizplus · Accepted Answer

Applying the Incentive Principle, since the cost of providing 24-hour service has fallen (due to technological innovations such as ATMs), we would expect more banks to provide 24-hour service now than 100 years ago.

With ATMs, It Is Possible to Retrieve Cash from the Bank