Bart and Lisa are fishing when Bart pulls out a fish with three eyes. The end of the clip reveals they are fishing from a stream close to the town’s Nuclear Power Plant. This clip displays the concept of negative externalities, as the three-eyed fish was implied to be a product of runoff from the nuclear power plant.
Thanks for the clip and summary Peter Selinsky.
Jeremy and John are seasoned wedding crashers and they are out looking for weddings to get easy dates, open bars, and nice meals. This example of free-riding works well because none of them pay the cost of attendance and they even come up with creative tricks to not have to pay for the cash bars.
An example of a negative externality is displayed in the movie Anchorman when Paul Rudd’s character, Brian Fantana, sprays his so-called desirable perfume, Sex Panther, which is claimed to contain real bits of panther and is also illegal in nine countries. He states, “60% of the time, it works everytime”. After he applies this stinky spray, he goes to talk to Veronica Corningstone. As soon as he walks into the busy room, everyone leaves and coughs in disgust from the scent of this special cologne.
Thanks for the clip Allie Ziolkowski!
It’s sometimes hard to get across the idea of public services as being a type of public good, but “freedom” may be a simple enough concept for students. This clip from Team America takes a country-spin on why it’s important to pay for public services like freedom. It also can be used to teach the concept of opportunity cost since freedom for people today cost a lot of lives in the past.
We can see economic concepts throughout the episode when Fish learns that he is rich because of a small savings account he opened 1000 years ago. Thanks to interest rates, his money has grown to billions. When Fish and his friends try to order a pizza, he finds out that anchovies no longer exist because of overfishing when humans arrived on the planet. Zoidberg notes that his people killed the anchovies because they always believed one more wouldn’t have an impact.
In this quick Axe commercial, we can observe both positive and negative externalities associated with cologne use. The original wearer didn’t realize the (good and bad) impact the second elevator guest would receive from his use of Axe Body Spray, and thus didn’t take that into account when he was applying it.
Robin and Ted list all the ways that the upstairs neighbors are being inconsiderate during their “bagpiping.” While enjoying themselves, they are causing a negative externality in the apartment below them and they aren’t considering that when they decide to bagpipe.
Some markets fail because of the lack of property rights, but trophy hunting could actually be used to alleviate some of those issues by assigning property rights to game wardens and then selling licenses for the right to hunt the animals. The funding from the licenses could then be used to help maintain the population. We don’t think Adam ruined anything here.
Big thanks to Kalina Staub for sharing this one with us!
Schmidt has a tendency to be a bit eccentric and bother his roommates with a variety of sayings/outfits. These outburst tend to annoy his roommates so they collectively agree to regular his behavior and force him to pay a tax to a “douchebag jar” when he does things the group considers unfavorable.
Evan Osnos discusses many of the externalities that arise from the increased production of Cashmere in China over the past decade. Osnos explains that cashmere goats in China have sharp hooves that tear up the landscape and create dust, which then travels to the United States and reduces air quality, particularly along the west coast. As cashmere consumption has increased, so has the pollution. Osnos refers to the “real costs” of cashmere items (such as a cashmere toilet seat cover that Colbert has) as including the health care costs for those affected by the dust.
Here’s a lesson plan from SERC: https://serc.carleton.edu/econ/interactive/examples/43020.html