ECONOMICS
Unit 2: Measuring and Managing the Economy
MONSTER’S INC.
You will be viewing a movie about economics, Monster’s Inc. While the movie is playing
answer the following questions about the economic principles being seen.
QUESTIONS DURING THE MOVIE:
1. What is the economic problem that is introduced at the beginning of the movie? What would you consider to be
the state of the market in the monster’s world?
An energy crisis /scream shortage
Recession
2.
What are the consumers’ needs
that Monsters INC provides
service for? Who is the target
market?
What is the demand for the
Monsters INC. product/service?
What is the status of supply for
the Monsters INC.
product/service?
3. While watching the movie keep a running list of the different methods of marketing used to promote the
Monster’s Inc. Company?
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4. While you are watching the movie identify the different examples of the factors of production:
LAND
LABOR
CAPITAL
5. What economic principle does having a “top scarer” at Monster’s Inc. match? What could this potentially do for
the company?
Employee of the month
Increase competition between the employees which could lead to increased productivity
6. What does the car scene represent when Mike wants to try out his new car and Sulley dissuades him?
An economic decision/concept of marginal costs and benefits
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In Mike’s case it would cost energy, a scarce resource in the monster world at this time, just for the benefit of
getting to work quicker and the enjoyment of the ride. However, if he were to walk to work, not only would he
save energy, but he would also get exercise, and more time to talk with Sulley.
7. What is the problem with the “top scarer” competition? Meaning, how does this not reflect what happens in the
actual market?
In the actual market companies compete with other companies. Individuals do not compete within one company.
Also, Monster’s Inc. has a monopoly on the scare business which is not allowed in a regular market.
8. How do the new job applicants at Monster’s Inc. not being well-educated effect the company? Think about
productivity and what a company would have to do to train new workers. Would this happen in the type of
economy the monster’s are currently in?
In a normal market this would lead to unemployment or the company not producing as much. Also, because
the company is struggling to keep up production it is not discussed how these employees are being trained
and who is paying for that.
Usually when there is a recession companies do not hire. They normally would cut rates or try and cut costs.
9. How does the movie show the concept of supply and demand?
At the beginning of the movie, the quantity of scream demanded outweighs the quantity supplied. Therefore a
shortage exists.
Mr. Waternoose is investing in new technology that would increase scream production and help bring the market
back to equilibrium. Randall creates the a scream extractor, that could get the company in trouble with the CDA
(Child Detection Agency).
10. What are the implications for Monster’s Inc. of Sulley and Mike figuring out that a child’s laugh is 10 times more
powerful than a scream? Think in terms of factors of production and the supply curve?
Monster’s Inc. now can employ comedians instead of scarers. They do not have to change their production
techniques or any of their factors of production yet they can shift the supply curve to the right and bring the
economy back to equilibrium.
11. What would you say the state of the economy is at the end of the movie?
Operating at equilibrium with assumed full employment.
DEBRIEF:
1. Based on the information that we have covered in class, what do you believe is the most important economic
concept highlighted in the film? Explain your answer.
2. Explain how both Scream Energy and Laughter Energy affect market demand and supply. What are the advantages
and disadvantages of both to Monsters INC?
3. Develop a slogan for the new Monster’s Inc. product, “laughter energy.”