Jerry's car is broken and he takes it to a new mechanic. The new mechanic gives an estimate that Jerry believes is too high. George says, “Of course they're trying to screw you—that's what they do. It's because you don't know anything about what's going on under there!” George also says that Putty, Jerry's regular mechanic, wouldn't try to screw him. Reputation for honesty can overcome moral hazard problems.

Elaine's new boyfriend, Jerry's mechanic David, has stolen a bedroom move from Jerry. Jerry wants him to stop using it, but Elaine wants to continue to enjoy it. In the end, Jerry ends up “selling” the property right for a cheaper bill for car repair.

Kramer brags to Jerry that he's taken up Karate and is dominating his dojo. Jerry discovers that Kramer is in a class of 6-year-old children. Kramer beats up on all of the kids, but at the end of the episode they decide to stop competing with one another and band together to form a force capable of dominating Kramer.

Kramer brags to Jerry that he's taken up Karate and is dominating his dojo. Jerry discovers that Kramer is in a class of 6-year-old children. This illustrates the idea that sometimes size and scale are important. If you're the biggest kid on the block, you might have a competitive advantage.

At a birthday party for his girlfriend's son, a fire breaks out and George rushes to the door pushing everyone else (including old women and children) out of his way.

Kramer, George, Jerry, and Elaine sit by and watch while a man is carjacked. They are arrested for not acting under the town's new Good Samaritan law. The law is designed to overcome individuals' incentive not to come to others' rescue; we can think of this as a law that changes payoffs in a game matrix.

Elaine's neighbor's dog keeps Elaine awake at night barking. She, Kramer, and Newman devise a scheme to kidnap the dog and move it to the country so it no longer bothers her.

Jerry and Elaine are contemplating having sex, but worry about losing their friendship. “We can have this...or we can have that." But clearly, they can't have them both, though they try. Later, in the coffee shop, George chastises Jerry for trying to have them both.

Jerry gives Elaine cash for her birthday, thinking she can spend it on whatever she likes best. But Elaine is mortified; she wanted a thoughtful gift that signaled Jerry had put great thought into his gift. Kramer enters and does just that—gives Elaine a thoughtful gift.

When George joins a book club to impress a girl and then finds the reading too costly, his demand for a substitute good (the video of the novel) rises to ridiculous proportions. In the end, he finds that the movie and the book are imperfect substitutes.

The comedy clip at the beginning of the episode puzzles about why the Chinese use chopsticks. The idea hasn't hit them yet that the spoon might be a superior tool.

Jerry and his friends go to a restaurant but must stand in line and wait for a table. They ultimately are willing to pay to get a table.

Elaine wonders why the restaurant uses a “first come, first served” allocation. She suggests that people should be seated based on hunger level.

Jerry lies to his uncle and says he can't go to dinner with him. “Did I do a bad thing by lying to my uncle and saying I couldn't go to dinner? Plan Nine from Outer Space – one night only! C'mon!”

A Kenny Rogers Roaster restaurant opens across the street from Kramer. He can't stand the red glare from Kenny's neon sign, and moves into Jerry's apartment. But he becomes hooked on Kenny's chicken, and eventually accepts the red glare in exchange for access to the chicken. When Kenny's shuts down, the lights go out, and Kramer's overall welfare falls—the benefits of the chicken outweighed the cost of the glare.

A Kenny Rogers Roaster restaurant opens across the street from Kramer. He can't stand the red glare from Kenny's neon sign, and moves into Jerry's apartment. But he becomes hooked on Kenny's chicken, and eventually accepts the red glare in exchange for access to the chicken. When Kenny's shuts down, the lights go out, and Kramer's overall welfare falls—the benefits of the chicken outweighed the cost of the glare.

Kramer receives a bunch of cuban cigars from George; he trades them to a golf pro for access to a very nice course. When the cigars are lost in a fire, Kramer goes to the Cuban embassy, where he finds that they are illegal. But the Cuban diplomats are willing to trade some cigars for Kramer's favorite jacket...and for access to the nice golf course.

Kramer has been playing on a private golf course, but has lost his access. He gives an impassioned speech about what it's like to play on a public course—the crowds, the brown patches of grass, etc.

Kramer burns down the cabin of George's new girlfriend, with cigars her father had given him, and which George had passed on to Kramer.

Kramer ends up hosting a group of Japanese tourists, saying, “Manhattan can be quite pricey, even with 50,000 yen.” Elaine responds, “50,000 yen—isn't that only a few hundred dollars?” “Evidently,” Kramer replies. This illustrates the nominal exchange rate (50,000 yen for a few hundred dollars) and points to the idea of the real exchange rate (in terms of purchasing power, 50,000 yen doesn't purchase many visiting days in Manhattan).

Jerry is dating a Miss America contestant, and Kramer appoints himself her chaperone. While at dinner, Kramer asks what she would do to make the world a better place. She says that she would try to end world hunger. “If everyone ate one meal less, there would be enough food to feed the world.” Jerry says that's one “helluva plan.” This is an example of unsound economic reasoning the misconception that for others to have more, we must take less.

George puts a dollar in the tip jar at the pizzeria, but the counterman's head was turned and he didn't see it. George laments that it cost him a dollar, but he got no credit for it. His altruism is not pure—he gets utility not from giving, but from getting credit for giving.

During the comedy sketch at the beginning of the episode, Jerry talks about “Bermuda Triangle” locations where no business can survive.

Jerry convinces Babu to serve Pakistani food—he'll be the only Pakistani restaurant in the neighborhood. Babu tells Jerry that the restaurant is failing and that Jerry is a very bad man. Babu's restaurant then closes. Jerry blames it on a bad location.

In the comedy clip at the end of episode, Jerry says that the amazing thing is that “for every job, no matter how objectionable, there is someone there to do it.” Properly functioning markets ensure that all jobs get filled; often to do this certain jobs require an additional premium to compensate for risk or other unpleasant dimensions of the job.

Kramer and Newman hatch a scheme to arbitrage bottles from NY, where the deposit is 5 cents, to Michigan, where the deposit is 10 cents. They can't figure out how to make the costs work; gas is too expensive (variable costs), and there's too much overhead (fixed costs of tolls, permits, etc.) with using a semi to haul the bottles in volume. Finally, they hatch a scheme to use a mail truck, which lowers their variable and fixed costs to zero.

In this episode, Kramer is donating blood and saving it in a blood bank for future use. He becomes dissatisfied with high fees at the blood bank, and decides to keep it at home instead. In the meantime, Jerry nicks his jugular with an Exacto knife and needs blood. He awakens in the hospital with three pints of Kramer's blood in him. This illustrates that when savers save, their assets don't sit idle; they are immediately channeled to some productive investment most often by the banking system or another intermediary (such as the blood bank in this example), but sometimes through direct transfer (such is the case with direct purchase of stocks and bonds, and in this example, the direct transfer of Kramer's blood to Jerry).

Jerry lives in a rent controlled building. The only time an apartment opens up is when Mrs. Hudwalker dies, because rent controls create immobility. Elaine and Jerry find out about the opening, and because Elaine happens to be first in line, she gets it for $400 per month. Subsequently, Jerry gets worried about having Elaine living so close, and tells Elaine that she can't have the apartment--the super was offered a $5,000 bribe.

George discovers that when he wears a wedding band, women come on to him. The band signals 1) that you are not gay, and 2) that you are of marriageable quality. A girl discusses the signal with George; she uses the ring as a screening device.