Final answer:
Leisure time is the period used for relaxation, enjoyment and activities unrelated to work. Individuals make daily decisions on how to balance work hours and leisure based on a labor-leisure budget constraint, influenced by wages and personal preferences for leisure versus income.
Step-by-step explanation:
Leisure time is defined as time that is spent away from work and the obligations of daily life. It is the period during which individuals engage in various activities that they enjoy and that provide them with relaxation and enjoyment. Leisure can be viewed as a 'good' akin to tangible products like chocolate or blue jeans. This is because people derive utility not only from the physical goods they purchase but also from the enjoyment leisure time brings them. As people choose how to allocate their time between work and leisure, they face a labor-leisure budget constraint, where they must decide how many hours to dedicate to work to earn an income and how many hours they can afford to enjoy leisure activities.
With only 24 hours in a day, everybody operates within a time constraint. The individual's choice is a trade-off between the income earned from working and the utility gained from leisure activities. This relationship forms the basis for the labor supply curve, where higher wages may lead to either an increase or decrease in work hours, depending on how much the individual values leisure time versus additional income.
In recent times, leisure activities have shifted towards more sedentary options, like computer games, web surfing, and television viewing. However, historically, Americans have enjoyed a variety of active and passive leisure activities, from sports and reading to watching TV and participating in community-based youth activities.