Final answer:
Your friend's decision to use money for a vacation or to buy a car depends on weighing immediate enjoyment against long-term practicality. A vacation provides a temporary respite and memories, whereas purchasing a car offers continuous utility and independence.
Step-by-step explanation:
When faced with a decision where your friend plans to use money either to go on vacation or to buy a car, you should consider various factors. Going on a vacation offers a temporary experience of enjoyment and relaxation, which is a good way to create memories and relieve stress.
However, this is a short-term benefit. On the other hand, buying a car is a long-term investment that provides practical value, such as ease of transportation, independence, and potential savings on public transport costs over time.
Considering both the immediate gratification and the long-term utility, as well as the importance of personal choice and freedom in economic decisions, the choice will largely depend on your friend's current needs and future priorities. If mobility and practical daily utility are paramount, buying a car should be the choice.
If the needed benefit is emotional well-being from a break, then a vacation might be the best use of the money.