What Is the Term That Explains Why Voters Often Lack

question 65

Multiple Choice

What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters') welfare?

• A)the voting paradox
• B)logrolling
• C)rational ignorance
• D)regulatory capture

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Definitions:

Internal Rate of Return

An estimate of the profitability of potential investments, calculated as the rate of return that sets the net present value of all cash flows (both positive and negative) from the investment equal to zero.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par, used to finance government spending.

Par

Par refers to the face value of a bond or stock, which is the amount originally paid for it and the amount that will be repaid at maturity.