Highway Traffic Is a Mixed Good Because

question 107

Multiple Choice

Highway traffic is a mixed good because

• A)some people like it and others do not
• B)drivers creates costs that are borne by other drivers
• C)it is not free of charge
• D)because highways are rivalrous,but not easily excludable
• E)because highways are excludable,but not easily rival

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, representing basic necessities that individuals will purchase regardless of their income.

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.

Disposable Income

Fiscal assets at households' disposal for spending and saving after income taxes have been subtracted.

Consumption

Households' utilization of both products and services.