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Ron thinks he’s won a free steak from a local steakhouse, but instead he’s been served papers. While he isn’t actually getting that steak, he should have been weary about the opportunity of a free item.
See more: free lunch, NSTAFL
Ron owes a large settlement, but keeps his money stored in the form of gold and palladium. While the rest of the office thinks this is a really neat idea, they question whether he knows how much money he actually has since it’s not stored in paper money. Ron is confident in the weight of his money, but not its value.
See more: commodity money, fiat money, medium of exchange, monetary policy, money, store of value, unit of account
Ron and Chris disagree with the best way to motivate workers. While Chris takes a more intrinsic approach, Ron focuses on base level needs of fear and hunger, but also on money. Ron’s extrinsic approach comes from his belief in markets being able to serve as a motivator. Both agree that motivating workers can increase productivity, but disagree on the best method of doing so.
See more: incentives, labor, motivation, pay and productivity, productivity, self-interest
Tom isn’t happy with Mona-Lisa anymore, but he isn’t brave enough to break up with her. He decides to seek out help from his previous girlfriend, Ann, but it’s going to cost him. Ann initially refuses, but agrees once he offers her his chenille blanket that she likes.
See more: behavioral, break ups, exchange, gains from trade, prices, trade
The Animal Control Department in Pawnee is pretty inept. Their role in the government serves a purpose, but they aren’t doing a very good job. It’s possible a private enterprise (like a pest control service) could be more effective, but its cheaper to staff a few employees to do the same work.
Thanks to an anonymous submitted for the clip!
See more: government, incentives, principle agent problem, private incentives, shirking, social incentives
Ron and Leslie get into a debate about people’s right to determine how they treat their own bodies. Leslie shows up to his dinner where Ron announces he’s eating a Turf’n’Turf and will consumer an entire cigar. Ron is a firm believe that people should be allowed to do what they want with their bodies and shouldn’t be controlled by the government.
Thanks to an anonymous submitter for the clip!
See more: choice architect, choices, free market, health economics, private benefits, social costs, tradeoffs
In a tight battle for City Council, Leslie approaches the President of the Pawnee Senior Citizens with a plan to place wheelchair ramps on every city building to make it easier for elderly citizens to get around. Bobby Newport announces a very similar plan, but instead of ramps, they propose adding chair lifts to each building. Both are pandering to the elderly vote with essentially the same program.
Thanks to an anonymous submitter for the clip!
See more: government programs, government spending, median voter theory, product differentiation, rent seeking
After Sweet-Ums tries stocking the local parks with their sugar-loaded protein bars, Leslie and Ann try holding a town forum to persuade citizens to vote against this decision. Ron isn’t happy with this directive because he is a firm believe in people having the right to consumer whatever they want and that the government should not interfere in that decision.
Thanks to an anonymous submitter for the clip!
See more: choice architect, choices, free market, government intervention, health economics, negative externalities, obesity, role of government
Leslie accepts a job with the National Parks Service in Chicago, but it means she has to leave her hometown of Pawnee, Indiana. She tries to recruit team members from the office, but no one is willing to go with her. She begins to realize all the things she’s going to miss when she leaves. Because time and resources are scarce, Leslie is forced to make choices.
See more: comparative advantage, migration, mobility, needs, opportunity costs, preferences, psychic costs, tradeoffs, wants
Tom’s Bistro’s soft opening didn’t go well, so he thinks it’s time to quit. Even though Ron recommends sticking it out, Tom is phased by the sunk cost fallacy; he loves quitting! April comes to the rescue and convinces him to at least try a full opening.
See more: behavioral, costs, entrepreneurship, firm decisions, production, sunk costs, variable costs
Economics of Parks & Recreation 