1.How does opting for the insurance on the rental change a person\'s perception

Question

1.How does opting for the insurance on the rental change a person's perception of risk?

2.1) Please comment on why the taxpayer resources might be squandered by Solyndra & our Government?

2) Would this happen if you had started a company with you own money?

3.What is the law of increasing opportunity cost?
Does the law of increasing opportunity cost apply for the Production Possibilities Frontier in the case of Rabbits and Berries?
If the opportunity cost of Rabbits with respect to Berries (and/or vice versa) was constant, what would the PPF look like?
?

Explanation / Answer

1. Most people make the mistake of mixing insurance with investment. so instead of opting for low cost pure life protection, they pack their portfolios with traditional plans, which yield low returns of 5-6% and come with a huge premium. Add to these other insurance plans like health, critical illness, car and home cover and the premium outgo swells up considerably.

2

1. Solyndra exposed the first way the taxpayer could lose out. The traditional advantage of making a loan is that lenders often get paid something even when the borrowing company fails, because they hold collateral. Solyndra's bankruptcy revealed the ephemeral value of the government's collateral. Taxpayers have yet to recover a penny from the company.

3. Teshe law of increasing cost is a principle that states that once all factors of production are at maximum output and efficiency, producing more will cost more than average. As production increases, the opportunity cost does as well.

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