What is meant by the term rational ignorance quizlet?
Rational Ignorance. when the cost of acquiring information is greater than the benefits to be derived from the information, it is rational to be ignorant. Implication.
When voters pay taxes in proportion to the benefits they receive from the government projects?
When voters pay taxes in proportion to the benefits they receive from government projects, projects that are efficient will tend to be favored by an overwhelming majority of voters. only a few special issues (those that exert the most impact on the voters’ personal welfare).
How are democracy and wealth related quizlet?
How are democracy and wealth related? Democracy is associated with institutions (free press, private property rights, lower levels of corruption) that are favorable toward growth and wealth accumulation. Once people’s basic needs have been met, there is an increased demand for democracy and political participation.
When a policy is specialized in its impact difficult to understand and affects a small part of the country it is more likely that?
When a policy is specialized in its impact, difficult to understand, and affects a small part of the country, it is more likely that: special interests get their way.
Which of the following is an example of rent seeking behavior?
Examples of rent-seeking behavior include lobbying for or otherwise supporting the implementation of a favorable regulation, subsidy, or tariff.
Which of the following is an example of a common resource quizlet?
An example of a common resource is: fishing in the ocean. An example of a good that is rival in consumption and nonexcludable is: public parks.
How does democracy help in economic growth of the society?
A 2006 meta-analysis found that democracy has no direct effect on economic growth. However, it has strong and significant indirect effects which contribute to growth. Democracy is associated with higher human capital accumulation, lower inflation, lower political instability, and higher economic freedom.
Which of the following is the smallest part of the United States budget quizlet?
Which of the following is the smallest part of the United States budget? foreign aid.
Which of the following groups are most likely to benefit when a country engages in free trade?
Which of the following groups are most likely to benefit when a country engages in free trade? U.S. consumers; U.S. clothing producers. Country A’s import demand curve will intersect Country B’s export supply curve. The net economic gains from free trade are usually negative.
What is public choice model of politics?
Public choice, or public choice theory, is “the use of economic tools to deal with traditional problems of political science”. Public choice theory is also closely related to social choice theory, a mathematical approach to aggregation of individual interests, welfares, or votes.
When is ignorance about an issue said to be rational?
Ignorance about an issue is said to be “rational” when the cost of educating oneself about the issue sufficiently to make an informed decision can outweigh any potential benefit one could reasonably expect to gain from that decision, and so it would be irrational to waste time doing so.
What did Anthony Downs mean by rational ignorance?
Anthony Downs coined the term rational ignorance in his 1957 book An Economic Theory of Democracy as a way to explain voter ignorance. Downs wondered why so many voters were ill-informed regarding what appeared to be relevant and significant issues.
What is the effect of voter ignorance on government?
Many industries will lobby to achieve their goals rather than the best interests of the people. Voter ignorance also results in taxpayers who don’t know how their money is being used and perceive the costs of government to be less, a concept known as fiscal illusion.
When is it rational to take a chance?
If the difference in value between a quality product and a poor product is less than the cost to perform the research necessary to differentiate between them, then it is more rational for a consumer to just take his chances on whichever of the two is more convenient and available.