Why is rational ignorance important from an economic standpoint?
I. Voters might not make informed choices.
II. Voters will make decisions based on incorrect or incomplete information.
III. Special interest groups may control economic outcomes if they are the only ones who are not rationally ignorant.

Question

Quizplus · Accepted Answer

Rational ignorance is important because it explains why voters might not make informed choices (I) and may base decisions on incorrect or incomplete information (II). This ignorance can allow special interest groups, who are well-informed, to exert disproportionate influence on economic outcomes (III).

Why Is Rational Ignorance Important from an Economic Standpoint