The Economics of The Office
Learning economics from the world's best boss
Performance Review
In this clip (found only on the deleted scenes sadly), Dwight attempts to justify the raise he feels he deserves. Dwight correctly identifies the relationship between inflation and his real wage. If Dwight’s nominal wages do not increase at least at the rate of inflation the real purchasing power of his wages will fall!
Season 2 Episode 8 "Performance Review"
Compensation Packages (J33) Inflation (E31)
Conflict Resolution Part 1
In this clip, Michael attempts to resolve a conflict between Oscar and Angela. One application of this clip is to reiterate the idea that voluntary trade results in a "win win" situation. This clip also can be used when showing outcomes on an aggregate supply/aggregate demand framework. When we have a major increase in aggregate supply (something like the IT revolution in the 1990's) it results in lower levels of inflation and unemployment or a "win win" outcome. (maybe even win, win, win!)
Season 2 Episode 21 "Conflict Resolution"
Inflation (E31) Unemployment (J60) Trade (F10) Macroeconomic Models (E10)
Conflict Resolution Part 2
Similar to the applications in Part 1, the "win lose" outcome in this clip can be used to talk about the expected trade off between inflation and unemployment when many polices are implemented.
Season 2 Episode 21 "Conflict Resolution"
Inflation (E31) Unemployment (J60) Macroeconomic Policy (E60)
Pyramid Scheme
Michael tries to convince the office to sell calling cards until he realizes it is a pyramid scheme. Occasionally, students will be offered "internships" that are thinly disguised ponzi schemes. This clip can be used as a lead in to talk about "mufti level marketing schemes" where the product being offered is not very valuable.
Season 2 Episode 19 "Michael's Birthday" Caution!
Consumer Protection (D18) Corporate Finance and Governance (G30)
Nepotism
Michael hires his nephew, Luke, to work at the office and is forced to defend his decision to the rest of the employees.
Season 2 Episode 19 "Nepotism" Caution!
Labor Demand (J23) Labor Discrimination (J71)
Halloween
This is a great example of how efficiency wages help minimize employee turnover. Dwight is willing to work for whoever “most values his loyalty!”
Season 2 Episode 4 "Halloween"
Wage Level and Structure (J31)
Image is Everything
This clip illustrates conspicuous consumption and the idea that someone may consume something to impress others as opposed to actually getting utility from the good itself.
Microeconomic Behavior: Underlying Principles (D01)
Business School
Another example of why not to invest in multilevel marketing. Michael explains he “lost all of his money in a pyramid scheme” when he was an undergraduate. After that clip there are several discussions about business which I think are worth keeping and faculty can evaluate as they see fit.