Homer and Marge discover that their house is sinking. Homer tries to repair the house himself, but is unsuccessful. Homer decides to call a foundation repairman and finds out that it will cost $8,500 for the repairs. Homer takes Marge to a party for the retirement of a Springfield Nuclear Power Plant employee. With a new position open at the power plant, Marge decides to apply for it to get the money for the foundation repair. With the help of Lisa, Marge gets the job at the power plant.
Meanwhile, at school, Bart does not want to take a test, so he fakes a stomach ache. Mrs. Krabappel asks if Bart has ever read The Boy Who Cried Wolf. From his office, Mr. Burns watches surveillance footage of his plant. When Marge appears, however, he is infatuated and attempts to win her affection. He begins to take her advice on ways to cheer everyone up around the plant by playing the music of Tom Jones over the plant's speakers, which further depresses the employees.
Bart returns to school, but when Mrs. Krabappel suggests that he take another test, he immediately procrastinates. Grampa comes to pick him up and on the way home and references The Boy Who Cried Wolf. Again, Bart is unfazed. When he returns to school again, he is forced to take the test without any exception. Bart protests, but Mrs. Krabappel ignores him. She places him alone outside the classroom, hands him the test, and leaves.
At Krustylu Studios, the taping of Krusty the Clown's latest show features a wildlife expert visiting, showing a hawk and a wolf, who warns that the latter is spooked by loud noises. Unfortunately for the wolf, Krusty declares "loud" being the secret word of the day. Celebration and noise ensue, causing the terrified wolf to panic and escape the studio.
The wolf runs to Springfield Elementary School, where it attacks Bart outside the classroom. He cries 'Wolf!' but Mrs. Krabappel ignores his pleas. Groundskeeper Willie rescues Bart by fighting the wolf, telling Bart to return to his classroom. Since he feels that he will not be believed that he was attacked by a wolf, Bart decides to say that he made it up by showing a 'little honesty' to Mrs. Krabappel. He then passes out on the floor, where Mrs. Krabappel pokes him with a metre stick and realises that he was indeed telling the truth. Grampa takes him home, while Willie gives the wolf some alcohol and consoles him about losing.
Mr. Burns attempts to seduce Marge, who tells him that she is married. He dismisses her, so she threatens a lawsuit and enlists the help of Lionel Hutz, who is completely unsuccessful and flees from Mr. Burns's army of real lawyers. Mr. Burns gives up after Homer defends Marge. The episode ends as Homer and Marge enjoy a private show performed by the captured Tom Jones, who secretly begs Marge to help him escape.