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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.


Definitions:

Groupthink

An occurrence in psychology where the pursuit of agreement or adherence within a group causes choices that are irrational or counterproductive.

Bad Decisions

Choices or judgments that lead to undesirable outcomes due to flawed reasoning or poor judgment.

Parasympathetic Nervous System

A component of the autonomic nervous system responsible for conserving energy by slowing the heart rate and increasing intestinal and glandular activity.

Neurons

Specialized nervous system cells responsible for conveying information to other neurons, muscles, or glands.

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