Asked by Jawwad Siddiqui on Jul 17, 2024
Verified
Traffic congestion is an example of a(n)
A) economy of scale.
B) externality.
C) public good.
D) government failure.
Traffic Congestion
A condition on road networks that occurs as use increases, characterized by slower speeds, longer trip times, and increased vehicular queuing.
Externality
An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.
- Absorb the concept of externalities and their significance for societal welfare.
Verified Answer
EF
Elliott FulghumJul 18, 2024
Final Answer :
B
Explanation :
Traffic congestion is an example of an externality because it is a side effect of driving that affects other people who are not directly involved in the action. It is a negative externality as it imposes costs on others (e.g., increased travel time, pollution) without their consent.
Learning Objectives
- Absorb the concept of externalities and their significance for societal welfare.
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