What is “rational ignorance”

assignment 1

assignment 1After reading Chapters One and Two of Mancur Olson’s Rise and Decline of Nations, please answer these questions:

(1) What is “rational ignorance”?

(2) (2) What is Olson’s explanation for why the United States has a graduated income tax but also allows numerous loopholes so that wealthy taxpayers often pay little tax?

( (3) Why might smaller countries be more likely to be more successful at collective action and have better coordinated labor movements than large countries?

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http://online.wsj.com/news/articles/SB10001424052702304782404577488584031850026

assinment 2

Read the above Wall Street Journal article about union lobbying. In terms of Olson’s argument, do trivial costs, selective incentives including psychic rewards from conformity to a group, small numbers, or another reason explain why workers are willing to function like campaign workers? Does this article fit or contradict Olson’s argument?

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