The Rational-Ignorance Effect Is a Result of

question 25

Multiple Choice

The rational-ignorance effect is a result of

• A) externalities that lead to an excess supply of information.
• B) the limited incentive of the news media to cover political campaigns.
• C) the expectation of individual voters that their vote will not be decisive.
• D) the lack of a college education on the part of most voters in the United States.

---

Definitions:

Departmental Contribution To Overhead

The amount of money that each department contributes towards covering the company's indirect costs or overheads.

Profit Center

A segment or division within a company that is responsible for generating its own revenue and profit, tracked separately for performance analysis.

Responsibility Accounting System

A system of accounting that tracks financial performance and costs at the level of individual responsibility centers, encouraging managerial accountability.

Direct Expenses

Expenses directly linked to a specific product, service, or project, like materials and work.