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
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
Ron’s chair becomes popular after being featured in Bloosh, and Annabelle wants to talk about licensing his designs and scaling up production. Instead of having each handmade by Ron Swanson, they can be mass-produced by foreign labor.
See more: demand shifts, economies of scale, luxury goods, outsourcing, preferences, product differentiation, subjective value
The Parks Department lists London and many of them go sightseeing. Ron comes across a novelty postcard that he likes and tries to buy the postcard with American currency, but his money isn’t accepted. Despite the importance of the dollar on a global scale, this currency has little value to the shopkeeper.
See more: fiat money, foreign exchange, medium of exchange, money, store of value, transaction costs, unit of account
Members of the Parks Department goes to London to visit, but Leslie can’t decide which bus tour to take. She has three options, all starting around the same time and needs to pick one. Ron and April aren’t much help. Because time is a scarce resource, Leslie needs to figure out which bus tour will maximize her happiness.
See more: choices, opportunity costs, tradeoffs
Tom incentives the department to come to his club and try his newest drink by threatening to place them on his “done-zo” list. The Parks Department decides to go to the Snake Hole Lounge to try Tom’s new drink, but instead they all have a bit too much and go through the next day feeling terrible. One of the other issues shown in this video is diminishing marginal utility. As the night goes on, each member of the group gets a bit happier, but they eventually peak and see negative returns the next morning.
See more: decreasing utility, diminishing returns, externalities, health economics, negative externalities, negative utility, private benefits, private costs, social benefits, social costs, unintended consequences, utility maximization
April accidentally schedules all of Ron’s meetings for March 31st because she doesn’t think it’s a real day. Instead, Ron has to deal with a variety of concerned citizens, many of whom are causing externalities throughout the city.
See more: command and control, externalities, government regulation, negative externalities, private benefits, role of government, social costs
The Pawnee Video Dome is failing and going out of business. Leslie is trying to find tax breaks to keep him afloat, but Ron says the market is signaling that the company is not providing enough value to consumers and deserves to fail. If companies provide a social good (like intellectual conversations) then governments may step in and subsidize the production of the service.
See more: bailouts, competition, growth, invisible hand, market exit in LR, positive externalities, product differentiation, role of government, social benefits, subsidies, technology