When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Question

Quizplus · Accepted Answer

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.

When a Highway Is Congested, Giving Rise to Negative Externalities