The Rational-Ignorance Effect Is a Result of

question 25

Multiple Choice

The rational-ignorance effect is a result of

• A) externalities that lead to an excess supply of information.
• B) the limited incentive of the news media to cover political campaigns.
• C) the expectation of individual voters that their vote will not be decisive.
• D) the lack of a college education on the part of most voters in the United States.

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Definitions:

Sole Proprietorships

A type of business owned and operated by one individual, where there is no legal distinction between the owner and the business.

Corporations

Legal entities that are separate and distinct from their owners, providing limited liability, easy transferability of shares, and perpetual existence.

Joint Ventures

A business agreement between two or more parties to develop a new entity and new assets by contributing equity.

Common Laws

Laws that have developed through court decisions, traditions, and legal precedents rather than through legislative statutes.