A State of Rational Ignorance

question 63

Multiple Choice

A state of rational ignorance

• A) is a reflection of too little education.
• B) makes sense only if information is a free good.
• C) exists only in ideal representative democracies.
• D) makes sense when the costs of becoming informed are greater than the benefits.
• E) none of the above

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Definitions:

Isoquant

A curve that represents all the combinations of two inputs that produce the same level of output in the production process.

Indeterminate

A condition or situation that is uncertain or not clearly fixed, often characterized by a lack of clear direction or outcome.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in producing a good or service.

Cost Of Capital

The return rate that a company must earn on its investment projects to maintain its market value and attract funds.