A city street is
A)always a public good, whether or not it is congested.
B)a public good when it is congested, but it is a common resource when it is not congested.
C)a common resource when it is congested, but it is a public good when it is not congested.
D)always a common resource, whether or not it is congested.

Question

Quizplus · Accepted Answer

When a city street is not congested, it can be considered a public good because it is non-excludable and non-rival in consumption. However, when it becomes congested, it becomes a common resource because it is rival in consumption (the more people using it, the harder it is for others to use) but still non-excludable (it is difficult to charge people for using a particular part of the street).

A City Street Is