Which of the Following Is an Example of Rational Ignorance

question 139

Multiple Choice

Which of the following is an example of rational ignorance?

• A) Glenda chooses to purchase a new CD at the store 1 mile from her home instead of driving all over town to see if she can find a lower price.
• B) Bob chooses not to vote since his vote will never swing the outcome of an election.
• C) ABC Corporation chooses to hire local workers instead of outsourcing jobs to another country.
• D) Jane decides not to study for her test tomorrow even though studying could raise her grade significantly.

---

Definitions:

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its legal value at issuance or redemption.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is issued at a discount from its face value.

Purchase Price

The amount of money paid to buy a security, asset, or property.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.