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.
Answer: c. is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
You might also like to view...
Refer to the figure above. At what level of output does the firm maximize profits?
A) 0 units B) 10 units C) 20 units D) 30 units
The value you give today to money you will receive in the future is called the future payment's
A) present value. B) future value. C) historical value. D) time-sensitive value.
One reason individuals are willing to pay for information in uncertain situations is that information
A) can reduce uncertainty. B) is a way to diversify. C) is a method of insurance. D) is a method of self-insurance. E) always reduces the difference between the probabilities of possible outcomes.
In a competitive labor market, the demand for labor X that produces product Y will increase if the demand for product Y increases
a. True b. False Indicate whether the statement is true or false