A relationship commonly examined by economists is the “labor/leisure” trade-off (which you may remember from micro theory). This examines how people allocate their time between “working” and “not working.” Is it appropriate to say that a change in the amount of hours a person spends working causes a change in the amount of hours spent not working? Explain why or why not.



In one day of 24 hr,

Leisure time + working time = 24 hr


Leisure time = 24 hr – working time

Above equation shows that increase in working time will reduce the leisure time and vice versa. Therefore, it is appropriate to say that change in working time will make a change in leisure time spent by the person.

It is the primary reason for the tradeoff made by a person between working hours and leisure hours. Hours of work needed to earn a particular wage will decide the hours of leisure time available to the person.

Asked on January 28, 2018 in economics.
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