Leslie’s first act as a city councilwoman is to implement a soda tax because she believes that it will make Pawnee healthier. The new larger sodas are causing obesity in town and Leslie aims to regulate the market through taxes. Depending on the size of the local elasticity, there may not be much of a change in consumption, but it could mean additional revenue for the city.
See more: elasticity, externalities, government regulation, government revenue, health economics, negative externalities, preferences, regulation, taxes
The Parks Department is hosting a BBQ in the local park. Ron decides to bring a pig to the park because he wants people to see their food before consuming it. He is not allowed to because it is against the law and violates health codes despite his beliefs that he should be allowed to as the Parks Department director.
See more: externalities, government regulation, negative externalities, regulation, social costs
Ron invites Mark over to his workshop because he needs a license in order to continue selling products. Ron describes how he shouldn’t have to follow government regulations about toxic chemicals because he’s the only one breathing the fumes. If he isn’t bothering others then he doesn’t feel the need to be regulated.
See more: externalities, government regulation, licensing, private costs, regulation, safety regulations, social costs
Ron describes his promotion to manager of a sheet metal factory at the age of 9, but regrets that child labor laws are now ruining this country. Child labor laws a good example of decreasing in supply of labor for the early 1900s and a service as a good discussion on the role of government.
See more: child labor, efficiency, equity, externalities, labor, minimum wage, regulation, safety regulations, social costs, supply shifts, sweatshops