Questions: Question 7 (2 points) Information problems create inefficient outcomes in: 1) neither the private nor the public sector. 2) the private sector but not the public sector. 3) both the private and the public sectors. 4) the public sector but not the private sector. Question 8 (2 points) Individual accountability within the government bureaucracy: 1) is easy to monitor because of the small size and scope of 2) tends to be lacking because of civil service protections 3) tends to be greater than in private firms, making governme

Question 7: Information problems create inefficient outcomes in:

The answer is 3: both the private and the public sectors.

Explanation:

1. Neither the private nor the public sector: This option is incorrect because information problems, such as asymmetric information, can lead to inefficiencies in both sectors.
2. The private sector but not the public sector: This is incorrect because information problems can also occur in the public sector, leading to inefficiencies.
3. Both the private and the public sectors: This is correct. Information problems, such as moral hazard and adverse selection, can lead to inefficient outcomes in both sectors. For example, in the private sector, a lack of information can lead to market failures, while in the public sector, it can result in inefficient allocation of resources.
4. The public sector but not the private sector: This is incorrect because information problems are not exclusive to the public sector; they also affect the private sector.

Question 8: Individual accountability within the government bureaucracy:

The answer is 2: tends to be lacking because of civil service protections and government.

Explanation:

1. Is easy to monitor because of the small size and scope of government: This is incorrect. Government bureaucracies are often large and complex, making individual accountability challenging to monitor.
2. Tends to be lacking because of civil service protections and government: This is correct. Civil service protections can make it difficult to hold individuals accountable, as these protections often provide job security and limit the ability to discipline or remove employees.
3. Tends to be greater than in private firms, making government: This is incorrect. Generally, private firms have more flexibility in enforcing accountability due to fewer bureaucratic constraints and more direct oversight mechanisms.