Rational Ignorance Exists Primarily Because

question 94

Multiple Choice

Rational ignorance exists primarily because

• A) voters are apathetic.
• B) politicians tend to voice the same general views,so there is no reason to learn more about the issues.
• C) the costs of becoming informed outweigh the benefits of doing so.
• D) any of the above

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Definitions:

Depreciation Expense

The allocated amount of an asset's cost expensed over its useful life to represent wear and tear, obsolescence, or age.

EBIT

Earnings Before Interest and Taxes captures a business's earning power by including all costs except those related to interest and taxes.

Times Interest Earned

A metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Current Assets

Resources anticipated to be exchanged for cash, disposed of, or utilized within a twelve-month period or over the usual duration of the company's operational cycle, if that period extends beyond a year.