Explain why each of the following statements is True, False, or Uncertain accord

Question

Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.


1.The opportunity cost of going skiing during reading week is the sum of the amounts spent on travel, accommodation and meals, and lift tickets at the ski hill.

[My answer]
This statement is false. Opportunity cost is defined as ‘the cost using resources for a certain purpose, measured by the benefit given up but not using them in their best alternative use.’ It is the cost measured in terms of other goods and services that could have been obtained instead. In order for this statement to be true, it would have to include the alternative use. For example, the sum of the resources that could have produced travel, accommodation, and meals on a vacation to Mexico were better allocated to going skiing during reading week. Choices are the inevitable result of scarcity due to the fact that there are unlimited wants and needs, and limited resources.

I need to clean this up and make it clearer or do I have it mixed up completely?

Explanation / Answer

Opportunity cost is anything you had to give up to go skiing, so essentially its any money that could have been made, any time that could have been alloted elsewhere, etc. In this question, they suggest that opportunity cost is the sum of the money spent, which although the money spent on skiing could be spent elsewhere, it is not the sole cost of going skiing thus the statement is FALSE.

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