Justification of a government program based on the jobs that it will create rather than the merits of the program itself is known as the:
A)law of unintended consequences.
B)invisible hand.
C)crowding out effect.
D)broken window fallacy.

Question

Justification of a government program based on the jobs that it will create rather than the merits of the program itself is known as the:
A)​law of unintended consequences.
B)​invisible hand.
C)​crowding out effect.
D)​broken window fallacy.

Quizplus · Accepted Answer

The justification of a government program based on the jobs it will create rather than the merits of the program itself is known as the broken window fallacy. This fallacy argues that destruction or wasteful spending can be good for the economy because it creates work for people to fix or clean up the damage. However, this ignores the opportunity cost of the resources that could have been used for more productive purposes, and ultimately leads to a loss of wealth and economic growth.

Justification of a Government Program Based on the Jobs That