The term "broken scale diagram" in economics refers to a graphical representation that is used to illustrate a distorted or inaccurate depiction of data. It is an analytical tool that highlights the misrepresentation of scale or proportions in economic diagrams or graphs.

Understanding Broken Scale Diagrams:
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- Broken scale diagrams are typically used to emphasize the significance of certain economic variables by distorting the scale on one or both axes.
- This distortion can be intentional or unintentional, but it ultimately skews the interpretation of the data presented in the diagram.
- These diagrams can be misleading as they create an illusion of significant changes or relationships that may not actually exist.
- Broken scale diagrams often result from a deliberate attempt to manipulate the visual representation of data to support a particular argument or viewpoint.

Examples of Broken Scale Diagrams:
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- One example of a broken scale diagram is when the vertical axis in a graph does not start from zero, creating a distorted view of the data. This can make changes in the data appear more dramatic than they actually are.
- Another example is when the scale on one axis is compressed or expanded significantly, leading to a distorted representation of the relationship between variables.
- Broken scale diagrams can also be seen in pie charts, where the size of the slices is manipulated to emphasize or downplay certain categories.

Implications and Impact:
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- Broken scale diagrams can have significant implications on economic analysis and decision-making.
- They can mislead policymakers, investors, and the general public by distorting the true magnitude of economic phenomena.
- Decision-makers relying on broken scale diagrams may make erroneous judgments or base their actions on flawed information.
- The use of broken scale diagrams can also undermine the credibility and integrity of economic analysis, as it can be seen as a form of data manipulation or propaganda.

Conclusion:
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In economics, a broken scale diagram refers to a graphical representation that distorts the scale or proportions of data, leading to a misleading interpretation. These diagrams can have significant implications on economic analysis and decision-making. It is important to critically examine and question the accuracy and integrity of the data presented in economic diagrams to ensure informed decision-making.

A scale break is a stripe drawn across the plotting area of a chart to denote a break in continuity between the high and low values on a value axis (usually the vertical, or y-axis). ... An example of a chart with scalebreaks is available as a sample report.