Most neighborhood streets have traffic lights to help control the flow of traffic. Traffic lights are _____ and _____. Therefore, they will be _____ by the competitive market.

Question

Quizplus · Accepted Answer

Traffic lights are nonrival (one person's use does not reduce availability to others) and nonexcludable (it's not feasible to exclude individuals from using them). Given these characteristics, they are considered public goods and tend to be underprovided by the competitive market, as it's difficult to charge users directly for their benefits.

Most Neighborhood Streets Have Traffic Lights to Help Control the Flow