Leslie is hoping to obtain a piece of land for free so she can turn it into a park. Ron taunts Leslie about her $0 bid for the land because typically people expect money in exchange for goods and services. This can be a good illustration of the medium of exchange function of money, but can also lead to a deeper discussion of externalities.
See more: capitalism, exchange, medium of exchange, money, transactions
Ron teaches his young basketball players that capitalism is God’s way of determining who is smart and who is poor. In the long run of a perfectly competitive market, the worst performers should be pushed out of the market.
See more: capitalism, comparative systems, globalization, government programs, government spending, inequality, normative statements, taxes
Ron believes that the government should be operated by private enterprise (like Chuck E. Cheese) that uses a token system to participate, like taking a walk, going down a slide, or seeing a duck. This would take a previously nonexclusive good and turn it into one that must be purchased to be consumed.
See more: capitalism, common resources, exclusivity, private goods, profit maximization, public goods, types of goods
Ron and Leslie meet for lunch to settle a bet, but not before Ron extolls the virtues of capitalism and competition in the free market. Leslie, of course, disagrees on the role of government because she recognizes that not all services can be provided private enterprise.
See more: capitalism, competition, externalities, free market, government, public economics, public goods, role of government