problem of moral hazard may arise when individuals engage in risk sharing under conditions such that their privately taken actions affect the probability distribution of the outcome In economic theory‚moral hazard is a situation in which a party insulated from risk behaves differently from how it would behave if it were fully exposed to the risk.. Economist Paul Krugman described moral hazard as: "...any situation in which one person makes the decision about how much risk to take‚ while someone else
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While the basic concept of impaired driving is not hard to grasp‚ that doesn’t mean Illinois drunk driving laws are simple‚ or that charges of driving under the influence (DUI) are so lacking in complexity that just anybody can understand and defend against them. DUI is defined in Illinois as operating a motor vehicle while impaired by alcohol or drugs‚ including medically prescribed marijuana. Since mid-July 1997‚ Illinois has used a blood alcohol content (BAC) level of 0.08 percent or above as
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DMV Annual Report: Fiscal Year 2010 I Joe E. Miller Commissioner of Motor Vehicles Steven O. Dale Deputy Commissioner of Motor Vehicles EXECUTIVE STAFF Esther Miller Executive Assistant Mark Holmes Executive Assistant Natalie Harvey Public Information Specialist Debbie McCormick Executive Assistant Sue Miller Secretary Jennifer Floyd Graphic Designer SECTION HEADS Driver Services Legal Services David H. Bolyard‚ Director Jill C. Dunn‚ General Counsel
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Comparing Distracted Driving and Drunk Driving As smartphones have become more commonplace and accessible to people in recent years‚ distracted driving has emerged as a huge threat in our society. From arguing teens in the back seat to a child that dropped his sippy cup‚ there are a multitude of reasons we become distracted in our vehicles. For decades‚ drunk driving was one of the primary concerns when it came to vehicle collisions on U.S. roads. Choosing to drive after having only one or two
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How did events leading up to the Great Recession illustrate the significance of the Moral Hazard and/or the Principal-Agent problem? Give an example from a news article to illustrate. What could be done to minimize such problems? Answer. We referred to the article given at http://www.cato.org/policy-report/januaryfebruary-2010/perfect-storm-ignorance The root cause of everything that led to the great recession of 2008 can be traced to the Sub-prime Loan crisis. The riskier loans were exposed
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Texting While Learning Cell phones have become a big part of all of our lives. We use them when we are eating‚ at work‚ and some people even use their cell phones when driving. There’s one place in particular where we use our cell phones that might be causing us harm and we don’t even know it‚ it’s the classroom. Whether you know it or not‚ being on your cell phone in class decreases your ability to learn‚ comprehend and store material. Have you ever wondered why teachers don’t want students on
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Dangers and hazards of nuclear power When the term Nuclear Power or Nuclear Energy gets used usually the first things that come to mind for most people are bombs‚ destruction‚ war‚ and deformed humans. Which in fact are four things that occur the least in the nuclear power field. Nuclear power is much more than just bombs and destruction‚ bombs barely even take up a percentage of the total amount of nuclear energy used in the world today. Most all of the nuclear energy used today comes in the form
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to watch playing it leads to many dangerous life-threatening injuries. The informative article "Hard Knocks" By Gabriel Charles Tyler found in upfront magazine‚ the infographic‚ titled “How Many G’s”‚ and the youtube video labeled "Concussion Hazards in Youth Football" (Dr. Drew interview with Dr. Sanjay Gupta‚ HLN/CNN)‚ all give an adequate amount of information against the idea recreational departments and schools should provide programs such as football.So to help kids all over the nation
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Texting and Driving vs. Drunk Driving Over the last century‚ technology has helped society move forward‚ making things faster and easier. Having a vehicle has allowed people to reach a destination faster than they would if they had to ride a bike or even walk. Also the ability to now text using a cell phone speeds up the communication process even more. With all the new technological advances you have to many people taking advantage of it; by texting while they are driving to make business or
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New drivers may believe that driving an automobile is similar in every season‚ but experienced motorists are likely to know that winter and summer offer different pleasures and challenges. The most obvious distinctions between the seasons are the temperature‚ precipitation and amount of daylight. Each of these variables can change driving conditions dramatically. Indeed‚ some drivers even refrain from driving in certain weather. Fortunately‚ both seasons do have advantages so drivers can enjoy the
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