"Parable of the Broken Window" by Frederic Bastiat.Links to an external site. Read the Introduction and Part 1: "The Broken Window" only.

https://en.wikisource.org/wiki/Essays_on_Political_Economy/That_Which_Is_Seen,_and_That_Which_Is_Not_Seen

Spend some time thinking about this parable and then address the following questions:

Who gains and who loses when the window is broken? Explain.

What is the net effect of all the gains and losses? (Net effect is the final effect after all the pluses and minuses are considered. For example, a net effect of a positive 1 and negative 1 is zero.)

What economic concept is best illustrated by the parable? Explain.

What do you think Bastiat thinks of the economic effects of war? Explain.