The "broken window fallacy"
A)explains why inflation is so high.
B)is a justification for the government to print more money.
C)is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
D)has nothing to do with public policy.

Question

Quizplus · Accepted Answer

The broken window fallacy is a misunderstanding of economic principles, where it is believed that the destruction of property can lead to economic growth because it creates jobs for those who repair the damage. This fallacy is often used as a justification for government programs that are focused on creating jobs rather than on their actual merits. Therefore, option C accurately describes the broken window fallacy.

The "Broken Window Fallacy