All of the following statements regarding rational ignorance are true except
A)it results when the cost of information exceeds the expected benefit of acquiring the information.
B)it allows special interest groups to exert political influence.
C)combined with special interest groups,it yields inefficiency in the provision of public goods.
D)it leads to an efficient outcome.
E)it results in voters having little knowledge about issues that have little effect on their economic welfare.

Question

Quizplus · Accepted Answer

Rational ignorance leads to an efficient outcome from an individual's perspective but may lead to inefficiency in the provision of public goods when combined with special interest groups.

All of the Following Statements Regarding Rational Ignorance Are True