Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a
A)private good.
B)club good.
C)common resource.
D)public good.

Question

Quizplus · Accepted Answer

A common resource is a good that is non-excludable but rivalrous, meaning anyone can use it, but use by one person diminishes the availability to others. This accurately describes a congested public road, as anyone can drive on it but as more people use it, it becomes more crowded and less available to others. A private good is excludable and rivalrous, meaning it can be owned and used solely by one person and use by one person diminishes the availability to others. A club good is excludable but non-rivalrous, meaning it is owned and controlled by a group but can be used by many without diminishing its availability. A public good is non-excludable and non-rivalrous, meaning it is available to everyone and use by one person does not diminish its availability to others, which does not accurately describe a congested public road.

Consider a Public Road That Anyone Is Allowed to Drive