Permits Required to Drive Along Waterfall Corridor of Columbia River Highway This Spring

New this year, drivers on Historic Columbia River Highway must buy a $2-per-car permit to access the “waterfall corridor.” The goal is to reduce congestion, improve safety, and make for a better viewing experience.—opb.org

Answer the following questions to check your understanding of the story.

Prior to the implementation of the $2-per-car permit, is the “waterfall corridor” rival or nonrival, excludable or nonexcludable?

The “waterfall corridor” is ______________.

a) nonrival and nonexcludable

b) rival and nonexcludable

c) nonrival and excludable

d) rival and excludable

Will the $2-per-car permit decrease congestion?

The $2-per-car permit ______________ decrease congestion because ______________.

a) will not; $2-per-car is too small a cost to change driver behavior

b) will not; the permit does not change the benefit the drivers receive

c) will; drivers receive a smaller benefit, so they visit “waterfall corridor” less frequently

d) will; drivers now face the external cost they impose on other drivers

Permits Required to Drive Along Waterfall Corridor of Columbia River Highway This Spring

Like this:

Leave a ReplyCancel reply

Share this:

Like this:

Leave a ReplyCancel reply

Discover more from Econ Eye