Why Is Rational Ignorance Important from an Economic Standpoint

question 221

Multiple Choice

Why is rational ignorance important from an economic standpoint?
I. Voters might not make informed choices.
II. Voters will make decisions based on incorrect or incomplete information.
III. Special interest groups may control economic outcomes if they are the only ones who are not rationally ignorant.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

---

Definitions:

Unenforceable

A term applied to a contract or clause that, for legal reasons, cannot be enforced by a court.

Undue Influence

A situation where an individual is able to influence another person's decisions due to the power or trust they hold over them, often leading to unfair outcomes.

Duress

Duress occurs when someone performs an act as a result of coercion or a threat of immediate danger to life or personal safety, which compromises the voluntariness of their decision.

Valid Contract

An agreement between parties that meets all legal requirements and is enforceable by law.