Question 15 (1 point) The public failure known as informational problems: A) is generally larger in government than in markets since markets get correct valuations from consumers and producers in market prices while government often gets incorrect valuations from voters and special interest groups. B) is generally smaller in government than in markets since people have no incentive to tell the truth about preferences in market transactions, but do have a strong incentive to tell the truth about valuations in asking for government services. C) is a misnomer. Most people are very informed about what the government is doing. D) is low for things that government does not charge directly for, but is high for things that the government does charge directly for.
