Most code most programmers write won't ever run at sufficient scale or be sufficiently critical that CPU or memory bounds will matter, and using e.g. one sorting algorithm vs another will be largely irrelevant. It's recognising when you need to bother optimising that is the sign of a competent developer.
And asking someone to write actual (not pseudo) code on paper/whiteboards - as I've seen in interviews - is like assessing someone's driving ability by asking them to mime driving a car.
But it's worth pointing out that a Google style interview also includes some portion which is "system design" oriented which would touch more on that kind of thing.
But they're more interested in avoiding false positives, than false negatives. So the process is designed to weed out most people.