This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
10/13/2005
Do I Really Want to Save Money in Gas?
According to new mileage ratings from the Environmental Protection Agency and the Department of Energy the Honda Insight a gas-electric hybrid car edged out the Toyota Prius as the most fuel efficient car in the U.S. The Honda Insight will give you up to 60 miles per gallon in the city, and 66 miles per gallon on the highway. That is just a shade higher than the 17 miles a gallon I get from my Ford F-150. I have crunched the numbers and found that if I were to drive 10,000 miles next year in my truck with the current gas prices I would spend around $1,500 in gas. If I were to buy a Honda Insight and drove the same 10,000 miles I would only spend about $500. Now the only thing I have to do is put together a cost/benefit analysis and find out if it would be more beneficial to take some of that extra $1000 dollars I would save and put it into more quality dates while driving my girl around in a little two seat, four cylinder Honda Insight, or whether I would be better off sticking to the “cheap date” approach while diving around in my big Ford truck. Let’s face it, if any of you guys have taken a girl out in Cedar City you already know what I’m planning on doing. Besides I don’t think the Honda Insight would have the towing capacity to get my boat to the lake (another gas guzzler), or my four wheeler up the mountain.
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4 comments:
2006 Ford F-150 MSRP $19,805.00
2006 Honda Insight MSRP $21,080.00
Your savings on gas would be more than eaten up by the cost of the vehicle. Not to mention that there are very few mechanics (other than the ripoff dealers) who can actually work on a hybrid.
I think I'll stick to the gas guzzler as well.
Honda Insight owner! (Before the gas prices went crazy!) I own an Insight because there is nothing like taking care of the mouth that feeds you. The earth!) Practicing what you preach and putting your words into action.
The Prius gets all the press but I'm STILL getting the best gas mileage and clean emissions. Can't say that for the diesels....
Kathlene - Insightful Wacko
Ha ha, Morgan you sound like most of the girls I know. This is my fourth year at SUU and I can honestly say I have done my fair share of dating. I'm not the cheap date kind of guy, even though I drive my big Ford truck. I go on at least two dates a week, not hang out dates, but actual dates. You just have to hang out with the right knid of guys, which I'll admit aren't in abundance here at SUU. If you want to know a little secret, Sara is a boy and I think he's hurting for a date. If you want his number let me know. p.s. I hope you don't date guys for looks, because Sara is lacking! Ha ha!
OK - I laughed pretty hard at this thread. While proctoring a 2010 exam to boot.
Mia made the best point - it's pretty hypocritcal for most people to complain about gas prices.
That actually has a name in economics - it's called cheap talk. Complaining about high gas prices is something you can do that connects you to others in a way that isn't likely to harm you very much. It's like rooting for the home team - although in this case the home team is cheap gas and the visitors are big oil companies, OPEC countries, SUV drivers and so on.
The general point made by many of you is that there are significant opportunity costs in switching cars. Y'all scoff at economics professors when they talk about opportunity costs, economic profits, and implicit costs and benefits, but you're pretty darn good at figuring this stuff out when it involves something you deal with day-to-day.
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