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Economics: The Philosophy of Fun!

Spicing up the Intro Class

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Make it Pop!

Using pop-culture references helps students by relating questions and examples to television shows and movies that they already know.

It starts with a survey….

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Gather the Data and Make Examples

• Determine which movies, shows, and music are most popular among your class and make some examples using them.

For instance…..

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Impact of a tax – Lessons from Snooki

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Gathering Pop-Culture Information

Do I really have to watch the Jersey Shore to connect with my students…

No, just go to Wikipedia!

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Law of Comparative Advantage – Jersey Shore Style

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Law of Comparative Advantage – Jersey Shore Style

Pauley D works as a professional DJ in various night clubs and also hangs T-shirts in order to live at the Jersey Shore house. Pauley D can hang 20 shirts an hour, but he is pressed for time because he has all the DJing work he can handle at $50 an hour. Mike “The Situation” Sorrentino works as a personal trainer and also hangs T-shirts, but The Situation can only hang 10 shirts an hour. According to the law of comparative advantage, Pauley D should hire Mike to cover his shifts hanging T-shirts if and only if Mike’s wage rate is less than

Answer: $25 per hour.

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Law of Comparative Advantage – from the movie Legally Blonde

Elle Woods is an attorney and also an excellent typist. She can type 120 words per minute, but she is pressed for time because she has all the legal work she can handle at $150 per hour. Elle’s ex-boyfriend Warner drives a taxi and would like some typing work but can only type 40 words per minute. According to the law of comparative advantage, Elle should hire Warner to do her typing if and only if his wage rate is less than

Answer: $50 per hour.

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Law of Comparative Advantage – from the movie Ghostbusters

Winston is a ghostbuster and also an excellent typist. He can type 120 words per minute, but is pressed for time because he has all the ghostbusting work he can handle at $150 per hour. Janine is a secretary and would like some typing work but can only type 40 words per minute. According to the law of comparative advantage, Winston should hire Janine to do the typing if and only if her wage rate is less than

Answer: $50 per hour.

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Marginal Tax Rates – Sex and the City

Carrie Bradshaw works full time during the day as a columnist and faces a 20 percent marginal tax rate. If Carrie were to get an offer to write a book for $100,000, how much of this additional income would she be able to keep as net pay after taxes?a. $10,000b. $20,000c. $80,000d. $100,000

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Marginal Tax Rates – Entourage

Vincent Chase works as a movie star and faces an 80 percent marginal tax rate. If Vincent were to get an offer to spend the next year making a new blockbuster movie for $100,000. how much of this additional income would he be able to keep as net pay after taxes?a. $10,000b. $20,000c. $80,000d. $100,000

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Trade Creates Value – The Office

If Dwight Schrute voluntarily trades two boxes of beets to Michael Scott in exchange for one package of paper, then

a. Dwight must have valued the package of paper more than the two boxes of beets.

b. Michael must have valued the two boxes of beets more than the one package of paper.

c. Dwight must lose by an equal amount that Michael gains, since two boxes of beets are obviously worth more than one box of paper.

d. Both a and b are correct, c is incorrect.

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Economics: The Philosophy of Life

“He who will not economize will have to agonize” – Confucius

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Economists are Philosophers

“It is not from the benevolence of the butcher, the brewer or the baker, that we expect our dinner, but from their regard to their own self interest.” – Adam Smith, The Wealth of Nations

“….must trace not merely the immediate results but the results in the long run, not merely the primary consequences but the secondary consequences, and not merely the effects on some special group but the effects on everyone” – Henry Hazlitt, Economics in One Lesson

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But Philosophers are also Economists!

Opportunity Cost:

“With every choice you risk the life you would have had; with every decision, you lose it.” – Richard Bach

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But Philosophers are also Economists!

Creative Destruction, Economics of Business Failure:

“The mark of your ignorance is the depth of your belief in injustice and tragedy. What the caterpillar calls the end of the world, the master calls a butterfly” – Richard Bach

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Zen and Economics

The Power of the Profit Motive:

“Three Days More” from the book Zen Flesh, Zen Bones compiled by Paul Reps and Nyogen Senzaki

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Thank You