Question

You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but Average: /1 the benefits of the vacation are psychological. Suppose you had to work for one month in order to save enough for the vacation. Which of the following is true if you decide to take the vacation?
A. You are not being rational because it is impossible to compare the benefits of going on the vacation to the costs.
B. The opportunity cost of going on the vacation is the forgone wages you could have earned.
C. The benefits of going on the vacation exceed the cost of working for a month to pay for the vacation Contnue without saving

Answer 1

Answer:

C. The benefits of going on the vacation exceed the cost of working for a month to pay for the vacation

Explanation:

The benefits of vacation exceeds working because of the psychological benefits of the vacation. Because of the necessity of the vacation, even though you had to work for one month in order to save enough for the vacation, the benefits the person would enjoy because they went on this vacation would be more than what it cost for a month to pay for the vacation.