Asked by Kenny Wayne on May 03, 2024
Verified
Roads can be considered either public goods or common resources, depending on how congested they are.
Common Resources
Goods that are rival in consumption but not excludable
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they can be consumed by one person without reducing their availability to another.
Congested
Describes a state of overcrowding or overloading, often used in contexts like traffic, where too many vehicles lead to slowed or halted movement.
- Differentiate among the characteristics of public goods, private goods, club goods, and common resources.
- Understand the concept of the Tragedy of the Commons and its examples.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
True
Explanation :
Roads are typically considered public goods when they are not congested because they are non-excludable and non-rivalrous, meaning anyone can use them without diminishing their availability to others. However, when roads become congested, they can exhibit characteristics of common resources, where usage by one individual can affect the availability and quality for others, leading to potential overuse and degradation of the resource.
Learning Objectives
- Differentiate among the characteristics of public goods, private goods, club goods, and common resources.
- Understand the concept of the Tragedy of the Commons and its examples.