Answer to Question #167418 in Microeconomics for Kyla Mombay

Question

 You are trying to decide whether to take a vacation. Most of the cost of the vacation ( airfare, hotel etc.) are measured in dollars but the benefits of the vacation are useful to your studies. How can you compare the benefits to the cost?

Times like this in Pandemic

Answer 1

Vacations are associated with relaxation, peace and time to spend with families. If a person feels they are in need of these psychological benefits, then the cost of vacation may be worth it. When money is spend on pleasure the cost question is not counted since the cost has no value as this money is spend on pleasure which is a psychological matter hence comparing the cost to benefits will never arise here. At the maximum you can say that it is the opportunity cost for you and if vacation gives educational benefits then we can say that the cost is cheaper compared to benefits gained.