Bakers are much likely to supply pastries to the market if property rights are enforced. In the presence of market failures, public policy can improve economic efficiency.
Classify the source of market failure in each case listed.
Market Failure Market Power Externality
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons.
A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity.

Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.