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Broken Window

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Broken Window Econ question

Divertissement et humourÉconomie & finance
1  sur  1
Is destruction productive ? A vandal throws a rock through a homeowner’s window. Replacing the window costs the homeowner $ 100, which the glazier happily spends on some new clothes and dinner out on the town. This puts money in the pockets of a tailor and a restaurant owner. QUESTION: Has the economy benefited from breaking a window? Explain.

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Broken Window

  • 1. Is destruction productive ? A vandal throws a rock through a homeowner’s window. Replacing the window costs the homeowner $ 100, which the glazier happily spends on some new clothes and dinner out on the town. This puts money in the pockets of a tailor and a restaurant owner. QUESTION: Has the economy benefited from breaking a window? Explain.