ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Traffic congestion will be considered as overuse of common resources. This is because a congested road will be considered as common resource goods which are rivalrous and non-excludable.

Detailed explanation-2: -A common resource is a good that is nonexcludable but is rival in consumption. An example is the stock of fish in a limited fishing area, like the fisheries off the coast of New England. Traditionally, anyone who had a boat could go out to sea and catch fish-fish in the sea were a nonexcludable good.

Detailed explanation-3: -Therefore a congested toll road is a private good, since it is both excludable and subtractable, or rival, in consumption–every additional car on the road reduces the space available to others (and increases their level of aggravation).

Detailed explanation-4: -Answer and Explanation: The correct answer is choice d (fish in the ocean). Common resources refer to the scarce resources in the economy, i.e., water belonging to the public and provides benefits to all the individuals.

Detailed explanation-5: -Examples of public goods include fresh air, knowledge, national defense, street lighting, etc. Common resources are defined as products or resources that are non-excludable but rival. That means virtually anyone can use them.