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  • Example of an Excludable Public Good: Toll Roads and Bridges

Because a toll booth can be used to prevent drivers who do not pay from using a bridge, the bridge is considered a(n) ____ good.

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  • A new bridge is built to connect two parts of a city. To pay for its upkeep, an electronic toll is charged to every vehicle that crosses it. On a typical weekday afternoon, the bridge has plenty of capacity, and one additional car crossing does not prevent others from crossing or slow them down. How is the use of this bridge best classified under these specific conditions?

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  • Because a toll booth can be used to prevent drivers who do not pay from using a bridge, the bridge is considered a(n) ____ good.

  • A new toll bridge is built in a sparsely populated area. Over several years, the area develops, and traffic volume increases dramatically. Arrange the following statements to correctly describe the sequence of events and the resulting change in the bridge's economic classification.