The concept of rational ignorance is defined as
A) the decision not to acquire knowledge because of high marginal cost.
B) the deceit by bureaucrats who fool politicians in order to maximize their budgets.
C) politicians not telling the voters the real truth to stay in office.
D) voters being kept from knowing the facts by bureaucrats.
E) bureaucrats not knowing the size of their budget.

Question

Quizplus · Accepted Answer

Rational ignorance is the decision not to acquire knowledge because the marginal cost of doing so exceeds the perceived marginal benefit. It is a rational decision based on economic considerations, as individuals weigh the cost of acquiring new information against the expected benefit that this information would provide in making their decisions. The other options, such as deceit by bureaucrats, politicians not telling the truth, or voters being kept from knowing the facts, do not accurately capture the concept of rational ignorance.

The Concept of Rational Ignorance Is Defined as