Here are the study questions:

1. What is “the broken window fallacy?”
2. In objectivist terms, what category of cognitive error is involved when intellectual authorities “dilate upon the virtues of destruction?”
3. Who or what, according to Hazlitt, constitutes the dropped context in accepting the broken window fallacy?
4. According to Hazlitt, authorities “tell us how much better off we are in war rather than peace.” In committing such errors, are the authorities misusing induction or deduction?
5. What cognitive error is involved in confusing need with demand?
6. What cognitive error is involved in thinking of “purchasing power merely in terms of money?” Is this related to intrinsicism vs. nominalism?
7. On page 27, ¶ 2, Hazlitt notes that the war “changed the postwar direction of effort; it changed the balance of industries.” Look up consumerism and consumption in “The Ayn Rand Lexicon,” and relate this information to Hazlitt’s analysis of postwar economic activity.
8. “No man burns down his own house on the theory that the need to rebuild it will stimulate his energies,” is an instance of one of Hazlitt’s concretes. Discuss how the placement and form of this example relates to the use of reason in understanding the complexities of economics.
9. On page 28, ¶ 3 Hazlitt begins, “Those who think…” After reading this paragraph, find this page online: http://wiki.mises.org/wiki/Say's_law; read the definition, and the quote from Henry Ford. Is Hazlitt’s assertion a restatement of Say’s Law? Why or why not?
10. Is Say’s Law an arbitrary construct, or an objective concept? Discuss your view in terms of Rand’s seven virtues of rational morality.
11. Money is an invention that enables a person to quantify, calculate, exchange, and store value in terms that all other market participants subscribe to. As such, it is one of the most important inventions ever devised. Review Francisco’s dissertation regarding the love of money in Atlas Shrugged. Do you agree or disagree? Why?
12. On page 30, ¶ 2, Hazlitt writes, “But war destroys accumulated capital.” Is this a restatement of the broken window fallacy? Support your view.