Restoring Efficiency for Congested Public Goods via Exclusion

Analysis of a Public Park's Amenities

A small town opens a new public library with a high-speed internet connection available to all patrons. For the first few months, only a handful of people use the computers at any given time, and everyone experiences very fast connection speeds. As the library becomes more popular, there are often dozens of users online simultaneously, and the internet speed for every user slows to a crawl. Which statement best analyzes the economic nature of the library's internet service?

An economic index is created to track the price of a specific basket of goods. In the base year, the price of the basket was $200, and the index was set to 100. The following year, the price of the same basket of goods increased to $250. What is the index value for the second year?

Changing Characteristics of a Public Beach

Analyzing a Community Resource

Imagine a country is experiencing a severe and widespread decline in housing prices. A government-run insurance program compensates many homeowners by making substantial cash payouts. Aside from the direct benefit to these homeowners, what is the most significant intended effect of these payments on the broader economy?

A large, free-to-access community swimming pool is built. On a quiet weekday morning with only a few swimmers, one additional person entering the pool does not reduce the enjoyment or space available for others. However, on a hot Saturday afternoon, the pool is packed, and each new person who enters makes the experience more crowded and less pleasant for everyone already there. Based on this description, the swimming pool's characteristic of being a shared resource remains unchanged regardless of how many people are using it.

A town provides a free-to-use public boat launch ramp on a lake. On most days, boaters can drive up and use the ramp immediately. However, on popular holiday weekends, so many boaters arrive that long lines form, causing significant delays. At what point does the boat launch begin to function as a congested resource?

Which of the following scenarios best illustrates a resource whose shared-use characteristic fundamentally changes as the number of users increases?

Market Power and Income Distribution