The Cashflow Quadrant shows where our cash comes from. The left side (E and S) is for people who receives a paycheck for work they do. If you don't work, you don't get paid. On this side, you are selling your own time and effort. The more successful you become, the harder you will work …
Household Choice
Households must make three basic decisions: How much of each product or service to demand. How much labor to supply How much to spend today and how much to save for the future Household Demand The options available to households are determined by prices, income and accumulated wealth. These factors set the budget constraint. Households …
Saving and Borrowing
In Household Demand and Household Labor Supply we showed how households decide what to spend their income on currently. Households can also choose to: Use present income to finance future spending (Save) Use future income to finance current spending (Borrow) We can also use present income to enhance future production possibilities (investing) Borrowing Most people cannot finance large purchases …
Household Labor Supply
Most people earn an income as compensation for labor. Households must decide: Whether to work How much to work The type of work These decisions are affected by conditions in the labor market. The budget constraint and opportunity set is determined by: Availability of jobs Market wage rates Skills they possess The final choice depends …
Household Demand
Households choose products and services based on: The prices of the products/services as well as prices of substitutes and compliments. The household income and accumulated wealth Tastes and preferences Household's expectations about the future. The set of options available to us are limited by income, wealth and prices (the first two items on the list). …
The Luckiest Man in Babylon
Sharru Nada was returning from Damascus. With him was Hadan Gula, the grandson of his old friend Arad Gula who passed away. Sharru wanted to help Hadan build a future for himself, but it was easier said than done. Hadan believed that hard work was for slaves and that building a fortune requires some special …
The Clay Tablets of Babylon
Thousands of years after the destruction of Babylon, five tables where found in the ruins. These tables were written by Dabasir and it laid out his plan to pay of his debts and start accumulating wealth. Tablet I The first tablet was written shortly after Dabasir returned from Slavery in Syria. On the tabled he …
The Camel Trader of Babylon
Tarkad hardly had anything to eat for two days. He was walking back and forth in front of the diner hoping to see someone he knows who would be willing to lend him some money. Unfortunately he found himself face to face with Dabasir. Dabasir puts in special effort to make Tarkad feel uncomfortable about …
The Walls of Babylon
The main armies of Babylon was with the king on an expedition against the Elamites. No one anticipated an attack against the city in their absence. The mighty armies of the Assyrians came from the North. The valiant defenders battled to hold the walls. The survival of the city and hundreds of thousands of citizens …
The Gold Lender of Babylon
Rodan the spear maker did some work for the king and the king paid him fifty pieces of gold. Never before did he have so much money. He would like to keep his gold, but his sister wanted him to use the gold to help her husband start a business. Rodan decided to ask Marthon …
Making it Work 