Rational Ignorance Occurs When:​

question 37

Multiple Choice

Rational ignorance occurs when:​

• A)voters find the cost of understanding a specific issue greater than the expected benefit from doing so.
• B)legislation generates large benefits for a few people but imposes costs on many people.
• C)the preferences of the median voter dominate public choices.
• D)individuals or firms attempt to obtain favorable treatment from government officials.
• E)people make public decisions based on emotion rather than a rational analysis.

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Definitions:

Tax

A mandatory monetary contribution or different kinds of charges laid on a taxpayer by government institutions to support government expenses and diverse public costs.

Buyers Pay

The amount of money that purchasers spend to acquire goods or services.

Price

The quantity of money considered, needed, or paid in exchange for something.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, measuring the benefit to consumers.