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:

Bicycles

Human-powered, pedal-driven vehicles with two wheels attached to a frame, used for transportation, recreation, or sport.

Production

The process of creating goods and services from various input resources like labor, raw materials, and machinery.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing one option over another.

Leather Boots

Footwear made from the hide of animals, treated for durability and aesthetics, often chosen for protection or style.