Examlex
Most young children put their hands over their ears when they hear the loud boom of firecrackers at a Fourth of July festival,but at first pay scant attention to the person lighting the firecrackers.However,after just a few firecrackers have been exploded,some of the children put their hands over their ears as soon as they see the person approach the firecracker with a match! What is the conditioned stimulus?
Moral Hazard
Moral hazard occurs when an individual or entity has a tendency to take more risks because the negative consequences of those risks will be partially or fully borne by others.
Airbags
Safety devices in vehicles designed to inflate rapidly in the event of a collision to prevent occupants from striking interior objects or being ejected from the vehicle.
Reckless Driving
Operating a vehicle in a dangerous manner that disregards the safety of others, often resulting in legal penalties.
Economically Efficient Outcome
A situation where resources are allocated in a way that maximizes the net benefit to society or minimizes wastage.
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