The state of choosing not to acquire information because the costs of acquiring the information are greater than the benefits is referred to as
A) logrolling.
B) rational ignorance.
C) market failure.
D) government failure.

Question

Quizplus · Accepted Answer

Rational ignorance refers to the state of choosing not to acquire information because the cost of acquiring the information is greater than the benefits. This decision is considered rational when the benefits of acquiring the information are not significant enough to justify the cost of doing so. Logrolling refers to the practice of exchanging favors between two parties to get what one wants. Market failure and government failure refer to situations where the market or government fails to allocate resources efficiently. These concepts are unrelated to the situation described in the question.

The State of Choosing Not to Acquire Information Because the Costs