Assume there is no way to prevent someone from using an interstate highway, regardless of whether or not he or she helps pay for it. This characteristic is called
A) nonrivalry.
B) nonexcludability.
C) nontaxability.
D) nondiscrimination.

Question

Quizplus · Accepted Answer

Nonexcludability means that it is impossible or extremely difficult to prevent someone from using a good or service, regardless of whether or not they help pay for it. This is the characteristic of interstate highways as anyone with a vehicle can use them without being excluded, regardless of whether or not they contribute taxes towards their construction and maintenance. Nonrivalry, on the other hand, refers to a characteristic where one person's consumption of a good or service does not diminish the amount available for others; this is not the case with highways as increased usage can lead to congestion and decreased availability for other users. Nontaxability and nondiscrimination are not relevant characteristics in this context.

Assume There Is No Way to Prevent Someone from Using