Rational Ignorance Occurs When

question 120

Multiple Choice

Rational ignorance occurs when

• A)voters find the cost of understanding a specific issue is greater than the expected benefit
• B)legislation generates large benefits for a few people but imposes costs on many people
• C)the preferences of the median voter dominates public choices
• D)individuals or firms attempt to obtain favorable treatment from government officials
• E)people make public decisions based on emotion rather than a rational analysis

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Definitions:

Rational Individual

Refers to a person who makes choices that maximize their personal benefit or utility, based on their own preferences and available information.

Charity

An act of giving help, typically in the form of money or goods, to those in need.

Predicts Well

"Predicts well" refers to the accuracy and reliability with which a model or method can forecast future events or outcomes based on current or past data.

Economic Model

A simplified representation of economic processes, typically using mathematical formulas or graphs, to understand and predict economic behaviors.