Which of the Following Statements Is TRUE

question 304

Multiple Choice

Which of the following statements is TRUE?

• A) Rational ignorance exists only in politics.
• B) Rational ignorance still leads to an efficient outcome.
• C) It never makes sense for individuals to be rationally ignorant.
• D) Rational ignorance is bad because it leads to uninformed voters making decisions.

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Definitions:

Output

The amount of products or services generated by a company, sector, or economic system within a specific timeframe.

Constant Returns

Refers to a situation in production where increasing the inputs by a certain factor results in output increasing by the same factor.

Production Functions

A mathematical expression that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Scale

The size of a business or operation, which can impact its production cost, efficiency, and ability to compete in the market.