Question

What items would you include to figure out the opportunity cost of a vacation to Disney World?

Short answer

The items included to calculate the opportunity cost of a vacation to Disney world includes themonetary costs of travelling and shopping and the value of time spent.

Step-by-step solution

Meaning of opportunity cost

Opportunity cost is the used money, time, or other resources that could have been utilized differently. For example, the money used to buy things could have been kept in a bank and would have earned certain interest. The interest rate is the opportunity cost of holding money.

To characterize the opportunity cost of a vacation to Disney World following items should be considered:

• Monetary costs should consist of the travel or the admission charges to travel somewhere across the globe.
• The cost of time spent packing and going for a vacation can be used for other benefits like earning and studying.
• The cost of going for a vacation can be used for useful courses and investing money for other purposes.
• The value of the benefits is where the individual wants to spend their money rather than on productive pursuits.