Question

Which of the following is a reason that principal-agent problems arise between elected officials and bureaucrats?

O Elected officials do not care what happens with a program or law after it is enacted
O Bureaucrats teg to do a poor job because they are underpaid
O Bureaucrats are incompetent
O Bureaucrats have control of information that elected officials do not have (information asymmetry)

Answer 1

Bureaucrats have control of information that elected officials do not have (information asymmetry).

Step-by-step explanation:

In many situations, bureaucrats possess specialized knowledge and information about the programs they oversee, which elected officials might not fully understand or be aware of. This information asymmetry can lead to challenges in monitoring and controlling the actions of bureaucrats, creating a principal-agent problem. Elected officials might struggle to ensure that bureaucrats are acting in the best interest of the public because they lack the necessary information to evaluate the bureaucrats' decisions and actions effectively.