Rational Ignorance Helps Explain Why

question 99

Multiple Choice

Rational ignorance helps explain why

• A)legislators often trade votes on key issues to produce positive-sum games between them
• B)legislators usually disregard the desires of those constituencies that cannot influence their chances for reelection
• C)voters spend considerable time and effort to gather information to protect themselves against legislators with hidden agendas
• D)it is rational for legislators to ignore the wishes and desires of all of their constituents
• E)voters may choose to remain ignorant of issues when there are large costs associated with becoming informed

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Definitions:

Simple Rate Of Return

The rate of return computed by dividing a project’s annual incremental net operating income by the initial investment required.

Salvage Value

The estimated residual value of an asset at the end of its useful life, representing what it could be sold for or scrapped.

Technologically Obsolete

Refers to products, services, or technology that have become outdated or no longer maintain a competitive advantage due to advancements in technology.

Simple Rate Of Return

A method to evaluate an investment's efficiency by dividing the annual incremental net operating income by the initial investment cost.