Rational ignorance
A)explains why consumers ignore sunk costs when they vote.
B)explains the Arrow impossibility theorem.
C)refers to attempts by special interests to use government action to make themselves better off at the expense of others.
D)helps to explain why rent seeking by special interest groups occurs.

Question

Quizplus · Accepted Answer

Rational ignorance refers to the idea that people will not invest time and effort in acquiring information about a topic if the expected benefits of doing so are low. This can lead to biases in decision-making and allow for special interest groups to engage in rent-seeking activities.

Rational Ignorance