JoJo Is Shopping for a New Computer

question 62

Multiple Choice

JoJo is shopping for a new computer.A mail-order computer can be delivered to JoJo's home for $1,200.JoJo could pick up the same computer at the warehouse for $1,000.How should JoJo decide?

• A)JoJo should definitely drive to the warehouse because the monetary cost is $200 lower.
• B)JoJo should drive to the warehouse if the value of his travel time plus wear and tear on his car is less than $200.
• C)JoJo should definitely have the computer delivered,because the $200 saving is less than 20% of the purchase price.
• D)JoJo should definitely drive to the warehouse because the $200 saving is more than 10% of the purchase price.

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Definitions:

Fiscal 2009

Refers to the government's financial year 2009, which varies by country but typically encompasses a 12-month period used for accounting and budget purposes.

Laissez-faire

An economic philosophy advocating minimal government intervention in the market and the economy, allowing businesses to operate with few regulatory constraints.

High Unemployment

This term refers to a situation where a significantly larger portion of the workforce is without jobs, indicating economic distress or a recession.

Monetarists

Economists who assert that the dynamism in the money supply significantly shapes short-term national economic performance and price levels over the long haul.