Superstore — A truck with no radio

 

Dina special-ordered a truck with no radio (even though it costs more) because she believes it will be less attractive to potential thieves. Assuming criminals are rational, a truck without a radio wouldn’t be worth the potential punishment of auto theft or larceny.

Sesame Street — Earning Money

Elmo wants to earn some money, but he isn’t exactly sure how. Luis offers him a chance to earn some money by helping him repair the ice cream machine.

Spongebob — More Drive Thrus

 

After accidentally creating a large hole in the wall of the Krusty Krab, a customer mistakes the hole for a drive thru window and places and order. Mr. Krabs, being a the savvy businesscrab that he is, quickly adds a menu and microphone system to facilitate the drive thru. It becomes so popular people are waiting in line and causing a huge traffic jam (could use this to talk about a negative externality too!) in Bikini Bottom. The police visit and threaten to issue Mr. Krabs with a ticket and then the mayor comes in to complain as well, but Mr. Krabs has a solution. Adding a second drive thru to reduce the line, but that doesn’t work out too well. Watch what happens as diminishing marginal returns sets in.

Thanks to Erin Yetter (Twitter) for both the clip and the description!

Superior Donuts — Labor Market Discrimination

 

The local flower delivery guy makes racist remarks to Franco because he’s African American. The rest of the characters discuss other comments they have received regarding their nationalities. Labor market discrimination in this scene occurs as Arthur’s donut shop is a customer of the flour supplier. Customer discrimination could persist, but if the customers aren’t discriminatory, they have the ability to take their business elsewhere, which Arthur and Franco try to do. The Becker Model of discrimination argues that only customer discrimination can last in the long run because competition should drive out co-worker or firm discrimination.

The Walking Dead — Property Rights

 

In the middle of being chased by walkers, Rick and the group decide to break into a home because they believe it to be uninhabited. To their surprise, a man is living in the home and because threatening to shoot them, which would attract more zombies to the area. The group is faced with a decision of whether to kill the man to save their own lives or leave his property and face eminent death.

Thanks to Brian Hollar for the clip suggestion!

Ryan Hamilton — Making it in New York

 

One of the underlying assumptions of the improvements to society from ease of migration comes from the fact that the models assume homogenous works. While there may be gains to productivity from easier migration, it doesn’t mean that workers will necessarily adapt to their surroundings. In Borjas’s book, We Wanted Workers, he points out the implications of psychic costs on movers and argues that it’s not fair to assume all workers who move will be as productive as they were at their source. This bit from Ryan Hamilton echoes that sentiment that allowing for migration may not mean productivity gains will occur if workers are unable to adjust to their new surroundings.

A Series of Unfortunate Event — Library Operating Hours

 

Olivia is frustrated with the administration because they only allow the library to be open for a short amount of time. She rightly notes that it doesn’t actually cost anything for the library to be open longer, partly because her salary is paid regardless of the number of hours. The administration, though, has used the money for personal reasons and doesn’t understand why it needs to be open longer. Olivia argues that the marginal cost of operating the library is zero, which implies that operating the library is only one large fixed cost.

Thanks to Brittany Pifer for the scene recommendation!

South Park — Necessities & Substitutes

 

The economy of South Park has dwindled and Randy has some suggestions on they can survive the economy’s wrath. He recommends substituting many of their everyday items for cheaper alternatives, and returning back to the basics: water, bread, and margaritas. During recessions, income and wealth take a dip and people are unable to afford many of the items they may have once consumed. This shift allows for a discussion of inferior and normal goods.

Thanks to Zoe Cook-Nadel for the suggestion!

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