Rational Ignorance Can Not Be Seen in Which of the Following

question 19

Multiple Choice

Rational ignorance can not be seen in which of the following scenarios?

• A) A student has a final exam in exactly three hours. He knows from past experience that without at least some sleep he will be useless on the exam. In spite of the fact that he still has four chapters to read for the exam, he decides to sleep for 2.5 hours.
• B) You are a worker looking for work in a recessionary environment. You get a phone interview after which you are offered a job and have to start the next day. To secure a paycheck, you accept without doing any further research on the company.
• C) You have to fly urgently. You buy the first ticket available and it is expensive, but you pay anyway because you do not have time to research other flights.
• D) You have to fly urgently; however, you do extensive research for over an hour to find the best deal.

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Definitions:

Outside Supplier

A third-party provider that delivers products or services to an organization, which the organization does not manufacture or create internally.

Variable Expenses

Expenditures that adjust in response to the operations of a company.

Transfer Price

A price charged for goods or services transferred between departments or divisions of the same company or between affiliated companies.

Valve Division

Refers to a specialized business unit within a company that focuses on the production and sales of valves.