Rational ignorance is relevant for decision-making
A)only in private markets
B)in both the public and private sectors.
C)only for pubic choice.
D)only for public goods.

Question

Quizplus · Accepted Answer

Rational ignorance refers to the decision to remain uninformed about a topic because the cost of gathering information outweighs the potential benefit. This can occur in both the public and private sectors, as individuals may choose not to educate themselves on issues such as politics or financial investments. Therefore, choice B is the best answer. Choices A, C, and D are incorrect because they are too narrow in their scope and do not encompass the full range of decision-making situations where rational ignorance may be relevant.

Rational Ignorance Is Relevant for Decision-Making