Ben and Leslie propose a solution to solving the budget crises, but accidentally suggest that all D1 employees (low-level) should be terminated. Because there is a limited amount of funds available in the city budget, any money moving to one department must come at the expense of another department.
See more: federal budget, government spending, opportunity costs, rationing, scarcity, tradeoffs, unintended consequences
Leslie asks a city councilor to not cut the Parks budget 8% and to find the money somewhere else. The counselor decides to propose shutting down the local animal shelter in exchange. Because funding is scarce in the local government, the city councilors have to cut funding in one area to save another department.
See more: budgets, federal budget, government spending, opportunity costs, rationing, scarcity, tradeoffs, unintended consequences
While on suspension, Leslie buys her officemates Christmas gifts based on their personalities. Ron mentions how he only gives people $20, but realizes how great Leslie’s gifts are and how the office needs to remedy the gift giving imbalance. While Ron takes the most efficient outcome for gift giving, he’s realizing that there may need to be a bit more thought put into the process.
See more: behavioral, equity, gift giving, preferences, utility
Ann runs into Donna at a single’s event but is quickly sent away because she represents competition in “the jungle.” Dating markets work best whenever they are “thick,” but if there aren’t many available mates then it can be hard to match up.
See more: behavioral, common resources, competition, coordiantion problem, dating markets, game theory, zero-sum game
Ron finds a typewriter out by the dumpster, but the noise of the machine bothers everyone in the office. While it makes him happy, he’s not taking into consideration the costs he is imposing on everyone else.
See more: externalities, private benefits, private costs, social benefits, social costs
Ann announces that she is not a fan of group dinners where everyone splits the check. This is most likely because she believes she’ll spend under the average bill and would have to pay more than her share if split equally. While it’s more efficient to split the bill, it often leads to some inequities in the final amount each person pays.
See more: behavioral, efficiency, equity, incentives, private incentives, social incentives, tradeoffs
Economics of Parks & Recreation 