1. Private/Individual Cost Benefit Analysis (Sub-total: 5 points)

You just won a small lottery ($1500) and plan to use your winnings to go on vacation for a week. You have narrowed down your options to a choice of two trips. You can either:

Take a trip this summer to a BC wilderness area where you plan to hike and camp.

OR

Take a trip to a Caribbean island where you plan to snorkel in a coral reef and spend time on the beach.

1. For each of these options, please list (in no more than 4 categories), quantify and justify your private costs of taking the trip (in Canadian dollars). (1.5 points)

2. What are your private benefits from taking the trip? Based on your private costs and benefits, which of these two options would you choose? Why? (1 point)

c. For each of these options, please list (in no more than 3 categories) and justify (without quantification) the social costs (externalities) of each choice.

Did your assessment of the externalities change your decision (i.e., the option that you would choose)? Why or why not?