Labor Labor Law

Union Scare

The team is trying to donate days off so Cheyenne can have her baby since Cloud 9 doesn’t offer maternity leave. Jonah finds out how much profit Cloud 9 made the year before and calls corporate with Amy to try and see if they can give Cheyenne maternity leave.

Jonah inadvertently says the word “union” and a mess ensues. His goal was to secure paid maternity leave for an employee who will soon give birth, but the corporate office believes the store is threatening to unionize. The corporate office sends a union buster who behaves as though he is a labor relations consultant.

Consumer Choice & Behavioral crime Principles

A Truck with No Radio

As Dina and Amy go searching for Bo, Amy notices that Dina doesn’t have a radio in her truck. It turns out that Dina special-ordered her truck without a radio (even though it costs more) because she believes it would make her truck less appealing to potential thieves. If criminals behave rationally (which Gary Becker argued that most do), a truck without a radio wouldn’t be worth the potential cost associated with car theft. Dina has removed the incentive to steal her truck.

Growth Labor Supply & Demand

Cell Phones: Innovative or Destructive?

It’s back to school time and everyone has flooded the store to buy calculators, notebooks, dictionaries, and planners, but these are all items that come with a smartphone so it makes those products obsolete for most individuals. Joseph Schumpeter was a popular economic philosopher who pioneered the theory of creative destruction, which occurs when new innovations replace old industries. The benefits are a higher standard of living, but at the cost of jobs in those old industries.


Negotiating for a Raise

Amy wants to ask her boss for a raise, but she’s nervous. Jonah attempts to encourage her to fight for a higher wage because a portion of the wage gap is partly due to women being socialized that negotiating isn’t in their favor. Amy isn’t in the mood for his lecture, and Jonah gives up.

Consumer Choice & Behavioral Statistics

Probability of Success

When it comes to selecting numbers for a lottery, people tend to irrationally believe certain numbers are more important than others. Each number is just as likely to be selected as the other numbers, so placing a higher probability on one number being selected isn’t rational. Garret isn’t fooled, but he also isn’t fond of wasting his time watching others behave so irrationally.

Supply & Demand

Lottery Debate

Mateo and Cheyenne discuss what they would do if they won the lottery. The two list a variety of different items they would spend their money on after receiving their income boost. This income adjustment would result in the two of them purchasing normal goods, specifically luxury goods. These purchases are driven by income changes, not by the price of those products.

Labor Statistics Supply & Demand

Winning the Lottery

What would you do if you won the lottery? This clip fits nicely with two different sections of an economics course. The first is how people respond to income increases in terms of purchasing normal goods or luxury goods. For labor economics, this discussion is a good segue to discussion how increases in income decrease the time people devote to work assuming leisure is a normal good.


A customer is checking out at the pharmacy, but asks Tate if he can ring up just a few more items. Even though is main job is a pharmacist, he obliges the customer. With a long line behind the customer, Tate recognizes that his Doctorate of Pharmacy is probably better spent helping his customers with medical needs rather than helping the customer avoid another line at the front of the store.

Health Principles

Allocating a Flu Shot

There’s a long line of customers hoping to get a flu shot, but there’s only one vaccine left. Jonah has been tasked with identifying which customer will get the last flu shot for the day. Jonah argues that it should go to the person who needs it most, which would be an argument based on equity. The next person in line believes that he should receive the shot, which could be an argument in favor of efficiency. Because of the low price, there appears to be a temporary shortage. Rationing and a lack of a market for price adjustments creates shortages and inefficient allocations. The store could raise the price of the last remaining few shot as an incentive to have others return tomorrow for the normal price.


A Pharmacist’s Salary

Tate has no problem sharing his salary, but it’s unclear the main driver of the salary. In reality, salaries are comprised of a variety of skill and compensating differentials as well as potential efficiency payments. Tate has a doctorate of pharmacy, which should result in higher pay for human capital investments. In the clip above he mentions that people could die if he messes up, which probably adds a lot of pressure to his workday. This pressure could be a compensating differential that increases his pay. However, there’s also a chance he’s paid highly so that he doesn’t goof off, which would be an efficiency payment.