Problem regarding Rational Ignorance

Whenever decision makers select not to pursue further information as the expected reward for the searching for it does not surpass its expected cost, the outcome is: (1) Adverse choice. (2) Consumer exploitation. (3) Unintended effects. (4) Asymmetric information. (5) Rational ignorance.

Can someone please help me in finding out the accurate answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Shifts in the Demand Curve What are the

What are the conditions that shifts the Demand Curve?

Q : Higher prices and lower output in market

When a previously competitive industry becomes monopolized along with no consequence on market demand or the structure of production costs, the effect will be: (w) higher prices and greater output. (x) lower prices and greater output.

Q : Labor Contracts-Agreement of shops I

I have a problem in economics on Labor Contracts-Shop Agreements. Please help me in the following question. The union leaders would tend to favor the contract clause needing: (1) A sweat shop. (2) An agency shop. (3) A union shop. (4) An open shop.

Q : Revenue expenditure Why payment of

Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.

Q : Law of Diminishing marginal utility

Describe the Law of Diminishing marginal utility? Answer: Law of Diminishing marginal utility: As a consumer goes on consuming more and more units of a commodity th

Q : Time Estimates for Individual

Time Estimates for Individual Activities: A) Weighted Average Activity Time, t = (a + 4m + b)/6B) Standard deviation of activity times, σt = (b-a)/6C) Standard d

Q : Question based on production

In drawing the production possibilities curve we assume that: 1) technology is fixed. 2) unemployment exists. 3) economic resources are unlimited. 4) wants are limited.

Q : Implication of the law of demand The

The law of demand implies a relationship which: (i) Apply merely in the market economy. (ii) Needs government enforcement to work. (iii) Is negative among price and quantity demanded. (iv) Applies merely whenever scarcity is cured.

Q : Measurement of below poverty line Below

Below the poverty line the proportion of the U.S. population is: (w) rises with upturns of the business cycle. (x) has declined, though somewhat erratically, over the past 50 years. (y) has been virtually eliminated by a vigorous “War on Poverty

Q : Relatively price elastic demand For

For Cournot’s Spring Water the demand is relatively price elastic at: (i) point a. (ii) point b. (iii) point c (iv) point d. (v) point e.

Discover Q & A

Leading Solution Library

Avail More Than 1437884 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1950332
Asked

3,689

Active Tutors

1437884

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment