Rational Ignorance Can Not Be Seen in Which of the Following

question 19

Multiple Choice

Rational ignorance can not be seen in which of the following scenarios?

• A) A student has a final exam in exactly three hours. He knows from past experience that without at least some sleep he will be useless on the exam. In spite of the fact that he still has four chapters to read for the exam, he decides to sleep for 2.5 hours.
• B) You are a worker looking for work in a recessionary environment. You get a phone interview after which you are offered a job and have to start the next day. To secure a paycheck, you accept without doing any further research on the company.
• C) You have to fly urgently. You buy the first ticket available and it is expensive, but you pay anyway because you do not have time to research other flights.
• D) You have to fly urgently; however, you do extensive research for over an hour to find the best deal.

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Definitions:

Treble Damages

A type of compensation awarded in a lawsuit where the damages are tripled as a punitive measure against the defendant.

Clayton Act

A U.S. antitrust law enacted in 1914, intended to supplement the Sherman Act by addressing specific practices that could lead to monopolies or restrain trade.

Functional Discount

A reduction in price given to channel members for performing specific roles or functions beneficial to the discount grantor.

Chain of Distribution

The pathway through which products or services move from the manufacturer or provider to the final consumer, including all intermediaries.