The Broken Window Fallacy States That When a Window Breaks

question 263

True/False

The broken window fallacy states that when a window breaks and someone spends money to repair it, they have created new economic activity that would not have otherwise taken place.

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Definitions:

Standard Deviation

A metric that calculates the spread or variability of a dataset in comparison to its average, showing the extent to which the data points deviate.

Normally Distributed

Describes a distribution of data that forms a symmetric bell curve, indicating that the data follows a normal distribution pattern.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Mean

The average of a set of values, calculated by summing all the values and then dividing by the count of values.