Rational ignorance
A)results when the cost of acquiring information exceeds the benefit of acquiring the information.
B)allows special interest groups to exert political influence.
C)combined with special-interest groups can yield inefficient provision of public goods.
D)A,B,and C are correct.
E)None of the above are correct.

Question

Quizplus · Accepted Answer

Rational ignorance occurs when individuals choose not to acquire information because the cost of obtaining it exceeds the benefit they would receive from having it. This can lead to special interest groups exerting political influence, as they may be more motivated to obtain and use information. When rational ignorance and special interest groups combine, it can result in inefficient provision of public goods. Therefore, options A, B, and C are all correct.

Rational Ignorance