Assignment 1

I. The Broken Window a. There seems to be a key element of opportunity cost within the first section regarding the broken window, with the exception of what is not seen is the opportunity cost. This highlights key elements of economics but not necessarily public policy. With the destruction of the window there doesn’t seem to be any mandated public policy that would necessarily require, at least not that is brought up within this section. The economics play into factor when James B. spends money to pay the glazier to fix the window, which supplements the glazier’s business, who in turn supplements the suppliers business and begins kind of a ripple of effect of sorts in the economy several parties benefit from the broken window, not just one. II. The Disbanding of Troops b. Both economics and public policy come into play with this section. The government has the ability to enact public policy that pertains to the troops, which could entail how many troops are to be held at certain times and how much they get paid. The economics, to my understanding are a little bit tricky when the government increases the number of required troops. On one hand they decrease the amount of men or women that are in the industries working and putting goods or services into the economy, but on the other hand it seems that the government replaces it by the need of having to buy supplies and goods necessary to support the troops that it requires. III. Taxes c. This section is incredibly interesting in that the author speaks to how unequal the giving of taxes is to the government in how the trade off from the citizen to the government, the government benefits but for the citizen it is not always an equal trade or benefit. So how would public policy and economics come in to play? Taxes are a form of public policy, or a law, so everyone who