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Propose at least two proposals to minimize these concerns.
One of the primary reasons that so many home loans were issued in recent years to individuals who were not sufficiently creditworthy to be able to make timely payments on those loans is that there was an ongoing condition of asymmetric information. The individuals seeking the loans had much more information than the loan officers; in many cases they knew that they could not reasonably meet the conditions of the loan.
The hourly loan officers in many cases could probably have been able to determine that the individual was unlikely to be able to service the loan. However, these hourly loan officers were being rewarded for making loans and they had no real personal investment in whether or not the loan conditions were honored. They were only the agents of those who were assuming any real risk.
One possible solution for this problem is to make the loan officers' pay directly contingent on whether the mortgage holder continued to make payments for a specific period of time. Another, slightly less drastic tactic, would be to pay loan officers a flat salary so that they would be fairly compensated for their expertise regardless of how many loans they made. This would be the difference between a salesperson in a store selling on commission or being paid a salary: In both cases the person who is paid a flat rate can be assumed...
There has been much discussion about grade inflation at schools and universities. Discuss and display graphically the impact of grade inflation and the loosening of educational standards. Make sure to discuss how this will affect the ability of education to be used as a signal of worker quality.
One of the reasons that many individuals are focused on getting the best possible education for themselves is that they believe it will lead to a better job for them -- not just because they will have better skills and increased knowledge but also because a sparkling transcript will impress potential employers and give them a leg up in the employment process.
This is a reasonable assumption on the part of students and future employees. However, an essential part of this assumption is that there is a stable and predictable relationship between a student's efforts and abilities and the grades that that individual receives. Both the stability and predictability of this relationship are being deteriorated by grade inflation, in which students have to work less hard and demonstrate lower skills to get the same grades that more talented students once got. The following graph (http://gradeinflation.com/) demonstrates how badly grades and scholastic accomplishment have become unhinged:
4. There has been much discussion about grade inflation at schools and universities. Discuss and display graphically the impact of grade inflation and the loosening of educational standards. Make sure to discuss how this will affect the ability of education to be used as a signal of worker quality.
One of the reasons that many individuals are focused on getting the best possible education for themselves is that they believe it will lead to a better job for them -- not just because they will have better skills and increased knowledge but also because a sparkling transcript will impress potential employers and give them a leg up in the employment process.
This is a reasonable assumption on the part of students and future employees. However, an essential part of this assumption is that there is a stable and predictable relationship between a student's efforts and abilities and the grades that that individual receives. Both the stability and predictability of this relationship are being deteriorated by grade inflation, in which students have to work less hard and demonstrate lower skills to get the same grades that more talented students once got. The following graph (http://gradeinflation.com/) demonstrates how badly grades and scholastic accomplishment have become unhinged:
S. General Accounting Office (GAO) estimates' in 1991 stated that nearly 30% of those incarcerated had used drugs daily in the month before committing the offense for which they were in prison. By the year 2003 there were approximately 6.9 million individuals either on probation, in mail, or in prison which equals 32% of all U.S. adults residents or 1 out of every 32 adults. (U.S. Bureau of Justice Corrections
With corporate profits at an all- time high, the "annual $92 billion in direct and indirect subsidies to businesses and private-sector corporate entities" (Slivinski, S. May 14, 2007) would provide the funding necessary to implement the proposal. Policy invariably comes down to political positioning, and in this case the question becomes whether the strengthening of the middle class is a more important goal then subsidizing corporate coffers. In formulating the
Texas Prison Reform: A Success Story Government The prison population in the United States experienced an unprecedented expansion between the 1970s and the end of the first decade of the 21st century (Editorial Board, 2013). Beginning with a prison population of 174,000 in 1972 it grew to over 1.4 million by 2010, representing over a 700% increase (PSPP, 2010). By comparison, the growth of the U.S. population was a modest 32% during
California's Educational Funding: Tragedy or Equity? When attempting to determine whether the method and amount of public fund distribution is equitable within any school system, several factors are always considered. In the case of California, which boasts more than 1,000 individual school districts, 8,000 schools, and over six million students, many assert than in ex-ante analysis, the state's school finance system demonstrates sufficient levels of equitability. However, many do not agree. The foundation
Spain's Missionary Efforts In North American On Public Policy towards Volatile Movements Spain's missionary efforts in North American Spanish missions were something that was planned Spain. All of this took place during the 15th centuries and the 17th centuries in Mexico and also other portions of what today you call United States of America. It is clear that the Spanish missionaries plans for North America. However the foundation a Christian Spanish missionaries went
Monopolies and Trusts: Appropriate Areas for Government Intervention? Capitalism is the economic system that has dominated the United States virtually since the day of its independence. A social and economic system based on the recognition of individual rights; capitalism demands that owners' rights to control, enjoy, and dispose of their own property must be respected. In a capitalist system, the purpose of government is to protect individual economic rights, and to make