All of the following statements regarding rational ignorance are true except
A)it results when the cost of information exceeds the expected benefit of acquiring the information.
B)it allows special interest groups to exert political influence.
C)combined with special interest groups, it yields inefficiency in the provision of public goods.
D)it leads to an efficient outcome.
E)none of the above.

Question

Quizplus · Accepted Answer

All of the statements are true except for D. Rational ignorance does not necessarily lead to an efficient outcome as important information may be ignored or overlooked, resulting in suboptimal decisions being made.

All of the Following Statements Regarding Rational Ignorance Are True