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:

Retained Earnings

The portion of a company's profits that are kept or retained and not paid out as dividends to shareholders.

Retained Earnings

The amount of net earnings remaining for the company after distributing dividends to its shareholders.

Shareholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Appropriations

The act of setting aside funds for a specific purpose, often used in government budgeting.