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)results in all of the above.
E)results in none of the above.

Question

Quizplus · Accepted Answer

Rational ignorance occurs when individuals decide that the cost of acquiring information is greater than the benefits, leading to a lack of informed decision-making. This can allow special interest groups to exert influence and can result in inefficient public goods provision, making all the statements correct.

Rational Ignorance