Categories
Growth Labor

Investing in College Classes

Jonah has convinced Adam to buy a new grill and a new TV, but he didn’t know that Adam was married to Amy. Part of the reason he convinced Adam to purchase these items was so that his team could win the Color Wars and Amy could get a $100 bonus. While Amy and Adam are fighting, we learn that Adam is a serial entrepreneur and Amy invests in her human capital.

This scene is a good example of the tradeoffs associated with investing in human capital and physical capital. Adam wants to invest the money to support his business ideas, but Amy believes that investing in her college classes is better because it can lead to more money later.

Categories
Labor

Buying a New TV

Adam and Jonah are watching Adam’s YouTube channel on one of the TVs in the store, but Jonah will use this as an opportunity to try and sell Adam a new TV. In order to win the Color Wars, employees are trying to sell expensive items to increase their team’s total. Jonah doesn’t know that Adam is married to Amy and begins to insult her in an attempt to get Adam to purchase the TV. Adam makes some key comments that connect with the economics of the household, namely that his and Amy’s happiness is linked. He’s careful to consider Amy’s happiness before making purchases, because their utility functions are interdependent.