When Mr. Pulitzer decides to raise prices in the distribution channel by forcing the newsies (the newspaper boys) to pay higher prices for a pack of 100 papers, the newsies decide to go on strike. Without raising the price to the final consumer, the price increase essentially just lowers the profits the newsies can collect. They decide to go on strike and create a newsies union to have more monopoly power in the process.
Footloose — Playing Chicken with Tractors
Two high school students decide to play a game of chicken on a dare. In this classic game, two contestants head straight for one another and the winner is the one who doesn’t bail or turn away. If both participants turn away then they both are deemed “chickens.” However, if both stay the course then they will crash into one another and possibly die.
Thanks to Austin Boyle for the clip!
Eurotrip — Exchange Rates
The group pools their money together and realize that the exchange rate is in their favor. While $1.83 isn’t much to Americans, this could be a lot of money in a different culture. This clip could be used to teach purchasing power parity or a light-hearted introduction to exchange rates.
Demolition Man — Economic Freedom
John Spartan (Stallone) wakes up from a cryogenic state to find that the world as he knows it has been “re-programmed” to follow morality statutes. He wakes up from his frozen state confused from all the changes.
Should people be allowed to do what they want so long as it doesn’t hurt anyone else? That’s the question of economic freedom being presented in Demolition Man. In a more market-based system, people are free to do as they please even if it means that they’ll become unhealthy or do things that others may determine as weird. In a more command-based economy, everyone follows the same rules.
Count of Monte Cristo — What is Economics?
In the Count of Monte Cristo, our young protagonist decides to use his down time to train. He sharpens his mind *and his body. He studies different disciplines and, in this particular scene, he gives the definition of economics.
Thanks to Adrian Fohr for the clip and the description!
Swing Vote — Drink Less Beer
Molly (Madeline Carroll) and her dad Bud (Kevin Costner) are driving down the road, but Bud is unhappy with egg salad sandwich as a lunch option. Molly quickly points out that they are on a budget and that if he wants to eat better then he needs to drink less beer. This tradeoff can be illustrated with a budget constraint in economics. Given a fixed level of income, the only way to get more (or better) food, is to give up something else.
Old School — The Gift Frank Keeps Giving
Frank (Will Ferrell) tries to re-gift a bread make his friend Mitch (Luke Wilson), but it turns out that Mitch was actually the one to originally give the gift to Frank. Embarrassed, he accepts the gift back, but later tries to give the gift again during a child’s birthday party. One of the issues with gift giving is that most givers don’t know how the recipient values the item. In this case, Frank is stuck with a bread maker that he can’t seem to give away.
Movie: Old Schoo
The Terminal — Quarters for Carts
In The Terminal, Viktor Navorski (Tom Hanks) is trapped in JFK airport when his visa is no longer valid because his country entered into a civil war. Stranded inside JFK, he has to figure out how to eat and sleep while his political situation is resolved. He quickly realizes that many people aren’t returning the luggage carts even though there is a 25 cent “reward.” He begins collecting carts around the airport in order to buy Burger King meals.
Reservoir Dogs — Why tip?
Mr. Pink (Steve Buscemi) describes why he doesn’t tip waitresses. His associates try to convince him along an equity argument by saying it’s the right thing to do and how they are exploited because their tips are taxed. Mr. Pink argues from an efficiency standpoint that if the waitresses aren’t happy with their pay then they need to relocate. He eventually concedes to tip $1 when he’s reminded that he didn’t pay for his food.
Film: Reservoir Dogs
Cool Hand Luke — 50 Egg Challenge
In Cool Hand Luke, Petty criminal Luke Jackson (Paul Newman) is challenged to eat 50 eggs, but we can see the results of diminishing returns on the human body. Earlier in the film, they outline the rules of the game, but even with the help of some exercise and assistance chewing, Jackson barely makes it through the ordeal.