A Person Who Has Fallen for the Broken Window Fallacy

question 115

Multiple Choice

A person who has fallen for the broken window fallacy might make which of the following claims?

• A)To break a window is to ask for seven years of bad luck.
• B)Scientific thinking would never advance if it were not for the inadvertent breaking down of old ways of thinking.
• C)Any activity which entails an unintended consequence is not worth pursuing.
• D)The construction boom in the Gulf Coast states following the catastrophic Hurricane Katrina of 2005 proves that hurricanes eventually increase incomes in affected regions.

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Definitions:

Dollars

A unit of currency used in various countries, including the United States, Australia, and Canada.

Margin of Safety

The difference between actual or budgeted sales and the break-even point, indicating how much sales can decline before the company incurs a loss.

Electronics Boutique

A former chain of retail stores that specialized in video games and electronics, now known as GameStop.

Digital Camera

A camera that captures photographs in digital format, allowing for immediate viewing, deletion, or storage.