Moana laments about how she wants to travel the sea, but her father wants her to stay behind and help her village. Moana wants to travel, but she can’t do it on her own. In order to travel the sea, she requires a variety of inputs like her boat and the wind in her sail. In order to build the boat, she needs wood from the trees on the island, but also some human capital associated with how to build a boat that won’t sink. All of our decisions, and any production that occurs on the island, requires resources. The main resource on this particular island is people’s labor, as they produce a variety of items to ensure society remains intact. As Moana says, “everyone knows their role on this island.”
Gaston is the best man in town, for everything! If you don’t believe that, you can just ask him. In this scene from Beauty and the Beast, LeFou starts a song to help cheer up Gaston after Belle’s rejection. Gaston has an absolute advantage in a wide variety of things)—fighting, spitting, eating a large number of eggs, and even interior decorating. Gaston, however, is a relatively poor chess player. While Gaston is capable of doing everything for himself, it doesn’t mean he should. Gaston can still benefit from trade if he focuses on his comparative advantage.
Thanks to Matt Rousu for the clip!
Frozen is the story of two princesses, Anna and Elsa. Elsa has magical powers that she is forced to hide her entire life until her coronation ceremony. Elsa flees to the cold, remote mountains and sings “Let it Go” after finally accepting her magical powers and letting go of the pressure to hold back her true self. When she sings “the past is in the past”, it’s a reminder of the role of sunk costs in the decision-making process. Sunk costs should be ignored because that time/energy/money cannot be recovered in the present.
Thanks to Matt Rousu for the clip.
Chef Ramsey stops at a Scottish restaurant to help a struggling chef. What he finds is a restaurant where each employee makes a marginal change to the dish before it is sent on its way. A single dish may be modified by 7 different people, but it isn’t clear exactly how much of a contribution each is making. While each may add some benefit with their labor, the additional cost of waiting to send the dish out (and the cost of such a large staff) is part of the reason Chef Ramsey is there to help. The labor costs of the restaurant are $4,500 each week, but they aren’t even breaking even.
Thanks to Alex Marsella for the clip suggestion!
When Homer finds out from Apu that there is a local business buying old grease, Homer sets out to be rich. He buys $30 worth of bacon, feeding it to the dog, in order to harvest the extra grease and sell it. He spends hours frying up bacon only to earn 68 cents. He doesn’t seem bothered by his losses since his wife (Marge) paid for it. There’s one problem Homer hasn’t realized yet; Marge gets her money from Homer.
Thanks to Alex Marsella for the clip suggestion and summary!
For someone to be considered unemployed, they must actively search for employment and not be currently employed. In this scene from Mel Brooks’ History of the World, the unemployment officer asks two key questions of citizens looking for their unemployment payment:
- Have you worked (killed) last week?
- Did you try to work (kill) last week?
She also warns that their unemployment is about to run out and that they need to make sure that they find work, which is similar to how many unemployment systems are setup.
Thanks to Alex Marsella for the clip submission!
Appa has made a collection of baked goods but his wife thinks she could do it better. In an earlier scene, Umma damages a friend’s car and made offered to pay for half the cost of repairing the damage. Her husband is disappointed because he feels he could have saved them a lot of money. Umma lets him know that’s why she isn’t a millionaire, but at least she’s a better baker.
Thanks to John Kruggel for the clip submission.
One of the common shifters of demand is changing tastes/preferences, but that is often taught as something beyond the control of firms. It’s often associated with fads or maybe new research, but firms can also adjust the tastes of their products to induce new preferences. This 60 Minutes segment looks at how companies are changing demand for their products by directly changing the product, or at least the perception of their product.
Thanks to John Kruggle for the submission!
A new phone system can replace many of Pam’s tasks. She normally spends her day connecting incoming calls to different sales people and departments, but this new phone system will make it so that anyone calling Dunder Mifflin can dial directly to the department they want. She thinks she still has value at putting our candy, but then realizes a vending machine can do that as well.
Jim swoops in to save Pam and play the role of Michael Scott, the branch manager. Jim is in love with Pam and doesn’t want to see her fired, so he acts like Michael and tells the salesman that they aren’t interested. He’s almost busted, but luckily gets away with it.
Thanks to Richard McGrath for the clip submission!
Troy and Abed are sitting at dinner in a fancy restaurant when the bill arrives at the end. Troy initially offers to pay for dinner because it was Abed’s birthday, but is shocked by the final total since so many things on the menu must have been listed as “market price.”
Restaurants often list menu items as “market price” because they may include item (like lobster or fish) that have a constantly fluctuating price. Instead of printing new menus to account for changing prices, restaurants will just list it at “market price.”
Thanks to Luke Starkey for the clip submission.