Rational Ignorance Occurs When

question 120

Multiple Choice

Rational ignorance occurs when

• A)voters find the cost of understanding a specific issue is greater than the expected benefit
• B)legislation generates large benefits for a few people but imposes costs on many people
• C)the preferences of the median voter dominates 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:

Credit Instrument

A document that evidences a debt and the promise of repayment, such as bonds, notes, or mortgages.

Transferor's Warranties

Guarantees made by a seller (transferor) to a buyer about the condition, legality, and ownership status of the goods or property being sold.

Presenter's Warranties

Guarantees made by the presenter of a negotiable instrument, such as a check, regarding its legitimacy and their authority to present it.

Implied Warranties

Legal guarantees assumed in a transaction, suggesting that a product will meet certain standards even if not explicitly stated.