The Smiths – Heaven Knows I’m Miserable Now

This track by The Smiths offers a rich backdrop for exploring the opportunity costs associated with how people allocate their labor. The lyrics reflect the emotional cost of employment: the narrator moves from idleness to employment, only to express regret and dissatisfaction:

I was looking for a job and then I found a job
And heaven knows I’m miserable now

The chorus questions why he spends his valuable time (a scarce resource) on work that feels meaningless and unappreciated:

In my life, oh, why do I give valuable time
To people who don’t care
If I live or I die?

This song is a great opening to discuss opportunity cost in labor decisions: just because someone can allocate their time to paid work doesn’t mean it’s their most valued use of time. It’s important to remember that most labor models don’t focus on maximizing income, but rather utility. There is a tradeoff between the income we earn from paid labor and the loss of leisure time. The cost of that tradeoff is much higher when the work we do isn’t satisfying.

Thanks to Allison Murphy from Oregon State for the clip submission and topic recommendation

Superstore — Winning the Lottery

What would you do if you won the lottery? This clip fits nicely with two different sections of an economics course. The first is how people respond to income increases in terms of purchasing normal goods or luxury goods. For labor economics, this discussion is a good segue to discussion how increases in income decrease the time people devote to work assuming leisure is a normal good.

The Simpsons — Opportunity Cost of Lines

If you’re teaching opportunity cost, this is a great clip to show the value of time. Homer waits in line 8 days to grab a coveted ticket to an event. A passerby accurately notes that the Homer could have just purchased the ticket with the money he would have earned from working.

The following scene has a nice clip that can be used to talk about efficiency and equity.

If you love economics and The Simpsons, Josh Hall edited a book that may interest you.

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