The decision not to acquire information because the cost of acquiring the information exceeds the expected benefit from the information is known as
A) public choice theory.
B) the principle of minimum differentiation.
C) inefficient provision.
D) rational ignorance.

Question

Quizplus · Accepted Answer

Rational ignorance occurs when the cost of educating oneself on an issue exceeds the potential benefit that the knowledge would provide. This concept is often applied in the context of voters deciding not to become informed on complex political issues due to the perceived low impact their individual vote will have.

The Decision Not to Acquire Information Because the Cost of Acquiring