Which of the Following Best Explains the Term Rational Ignorance

question 147

Multiple Choice

Which of the following best explains the term rational ignorance?

• A) It is the decision to search for and acquire information only if there is enough time.
• B) It is the decision to stay uninformed on certain topics because of the prohibitive cost of gathering information.
• C) It is the decision to ignore free information that is vital in making the correct decision.
• D) It is the rational weighing of costs versus benefits.

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Definitions:

Licenses

Official permits to own or do something, typically issued by a government authority.

Central Park

A large urban park in New York City, known for its lush landscapes, walking paths, and cultural attractions.

Price Difference

The disparity in the cost between two or more goods or services.

Long-run Equilibrium

A state in an economy or market where all factors, including prices, supply, and demand, are fully adjusted and stable over time.