a. The problem of limited and bundled choice in the political process tends to

1. increase economic efficiency, because politicians choose programs with average net benefits.
2. increase economic efficiency, because politicians choose programs with positive and negative net benefits.
3. reduce economic efficiency, because politicians choose programs with average net benefits.
4. reduce economic efficiency, because politicians choose programs with positive and negative net benefits.

b. Public bureaucracies are possibly less efficient than business firms because

1. the private market is driven by profit, but this competitive force does not operate in public bureaucracies.
2. the private market has more resources than public bureaucracies.
3. the private market has access to better technologies than public bureaucracies.
4. workers in public bureaucracies have less supervision and shirk their responsibilities.