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Opportunity Costs: The Parable of the Broken Window
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Paradoxically, while natural disasters clearly destroy wealth, they also seem to create wealth and employment when the damages are repaired. But 19th century French economist Frédéric Bastiat argued that this idea is a fallacy and fails to take opportunity costs into account. In this video, philosophy professor Dan Russell of the University of Arizona defines opportunity costs and explains the importance of Bastiat’s realization on contemporary economics.

Subject:
Economics
Political Science
Social Science
Material Type:
Lesson
Provider:
Institute for Humane Studies
Author:
Dan Russell
Date Added:
09/14/2017