Asked by Gurlivleen Singh on Apr 26, 2024
Verified
When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.
Common Resource
A resource like air or water that is available to all but susceptible to overuse and depletion because it is not excludable.
Negative Externalities
These are unintended and adverse effects of a product or economic activity that impact third parties who are not directly involved in the activity.
- Acquire an understanding of the categories of public goods, private goods, common resources, and their respective distinctions.
- Appraise the efficiency of varied techniques in handling the use of shared commodities and the conservation of public resources.
Verified Answer
NT
Natasha ThompsonApr 27, 2024
Final Answer :
True
Explanation :
A highway, when congested, exhibits characteristics of a common resource because it is non-excludable (everyone can use it) but rivalrous (one person's use diminishes another's ability to use it), leading to overuse and negative externalities similar to those associated with common resources.
Learning Objectives
- Acquire an understanding of the categories of public goods, private goods, common resources, and their respective distinctions.
- Appraise the efficiency of varied techniques in handling the use of shared commodities and the conservation of public resources.
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