Chapter 7: Risks and Rewards of Smart Pills

What are the risks associated with smart pills?

Cardiovascular problems, high blood pressure, paranoia, potential addiction, and dangers when combined with other substances.

What potential rewards do smart pills offer?

Improved performance and enhanced memory.

What ethical questions arise with the use of smart pills?

The risk/reward trade-off, authenticity of benefits, and potential for cheating.

What are some causes of loss when evaluating health risks?

Genetics, accidental injury, and poor care.

What are punitive damages associated with?

Liability risk.

At what age do individuals face the highest risk of premature death?

In their 40s.

What are the elements of loss exposure?

Asset exposed to loss, cause of loss, and financial consequences of loss.

What are examples of causes of loss under property risk?

Fire, theft, hurricane, and accident.

What schedule are stimulant drugs like Ritalin and Adderall classified under?

Schedule 2.

What are the financial consequences of property risk?

Reduction in property value, increase in expenses, and lost income.

What are the five main categories of risk faced by individuals?

Property, liability, life, health, and financial.

What causes liability?

Violations of statutory laws, violations of contract terms, and negligent behavior.

What is loss exposure?

Any situation that presents a possibility for loss, regardless of whether that loss actually occurs.

What types of real property owned by individuals are exposed to risk of loss?

Crops, houses, and barns.

What assets are exposed to loss if an individual lives a long life?

Savings, retirement, and wealth.

Who faces the largest financial impact from premature death?

A single wage-earning adult with dependents.

What may poor financial planning cause individuals to do after retirement?

Return to the workforce.

What is unique about punitive damages?

They are not designed to compensate the injured party but to punish the individual or organization who committed the wrongful act.

What are special damages?

Monetary losses that can be easily documented and determined.

What are general damages?

Losses that are more difficult to measure or quantify, paid to compensate for intangible effects and inconveniences caused by an injury.

What is a civil wrong?

An act committed against an individual, organization, or business that causes property damage or injury, also called a tort.