Leisure is the time period when workers prefer not to work. Increase in leisure time will mean decrease in effective productive hours. Different factors are responsible for leisure hours. Some factors culminate from economy. Other factors may be demographic composition like age, sex etc.
A few such factors are stated below:
Economic factors:
1. Environment: It is very crucial. In an economy with hot climate, employees get tired very soon. So they require more leisure time.
2. Standard of living: It is also a very crucial factor. It depends upon the states of economy. In developed economy, people are rich. Their standard of livings are high. Many of their needs are satisfied to a reasonable degree. So urge for work and earn money is less prominent. In this situation, employees will prefer to work less and enjoy more leisure time.
3. Political policies: If government of the country has the policy to extract maximum from the employees, then standards of working hour set statutorily will be kept at high level. Hence workers have to take little rest and leisure.
Demographic factors:
Some such factors are stated below:
1. Age: If a person is young then he can work hard without taking much rest. So they will work more and will enjoy little leisure. But for aged people, more leisure time is needed
2. Skills: Demographically workers can be divided into highly skilled, semi-skilled and unskilled. Skilled worker can finish his allotted job quickly and enjoy more leisure. It is less if he is unskilled.
3. Dependent: A worker with more dependents have to earn more to maintain standard of living. So they will work more and will take less leisure. Just opposite situation is found when number of dependent is less.
What Do You Mean By Economic Activity? What Are The Factors That Influence Economic Activity?
An economic activity refers to transactions of goods and services in which there is involvement of kidney for the mutual benefit of both the parties that is buyer and seller in the market. These are the activities which have a long term effect on gross domestic product of the organization. Activities that involve money or exchange if goods and services in the organization for the benefit of the society. An economic activity could be a method that, supported inputs, ends up in the manufacture of an honest or the supply of a service. The classification of activities divides economic activities into classes that, by aggregation, build it doable to outline the sectors of activity (Agriculture, Industry, Construction, Trade, etc.).
For example - Buying of goods and services by the consumers for consumption and selling of goods and services by the sellers for distribution is an example of economic activity. Factors affecting economic activity -
1) Supply and demand - Demand or provide of products or services affects the economy like the rise in demand value of products or service increase which ends up in inflation and with inflation {money provide|funds|finances|monetary resource|cash in hand|pecuniary resource} in economy will increase and with will increase within the supply of products or services value of a similar decreases.
2) Interest rates - Interest Rate could be a major issue affects the liquidity of money within the economy. With a rise in investment income in country decrease and decrease in liquidity of country whereas with a decrease in investment income in country increase and end in a rise within the liquidity of country.
3) Inflation - With the rise in demand value of products or service increase which ends up in inflation and with inflation cash in hand within the market will increase.
4) Unemployment
5) Foreign exchange rates - The charge per unit comes into the image just in case of export and import. It affects international payment and value of products which affects the economy.
6) Labor - Labor plays an important role in economic activities and wages are received by doing job as a laborer. Labor is employed to do economic activity as It is considering every unit pertains to a particular main activity. Such activities can pertain to making, providing, purchasing or selling of goods or services.
7) Recession - If there is a recession in the economy, the production, consumption, and distribution of these goods and services reduces.
8) Boom - If there is an economic boom conversely, there will be more production, consumption, and distribution of goods and services
9) Government Policies - If the government implements policies that enable more production and consumption in the economy by fiscal or monetary policy, then there will be an increase. Conversely, if the government policies are rigid, then production and consumption in the economy will reduce.
10) External Factors - If the economy is open, a decrease in the economic activity of other countries of the world may affect the economic activity of a particular country as with globalization most of the economies of the world are interconnected via trade
11) Governance - Government activity additionally affects the economy. If the govt. is promoting any business like insurance or medical or technology it'll promote that sector that enhances its economy which can overall support the economy.
12) Statutory Compliance - The tax rate is illustrated through statutory structure of the economy which plays& a crucial part of the economy. The taxation policies related to tax rate regulates the price of goods and its sales which affects the economy.
13) Natural Resources - Natural resources are the gifts of nature which are used for carrying out money making activities across the economy.
14) Infrastructure or Physical Capital - Physical capital or infrastructure resources are the artificially created resources by use of natural resources as gifted by nature but not created by human beings and play a pivotal role in economical activities.
15) Technology - Technology are the products of science which are artificially created resources by use of natural resources which are used for carrying out money making or economical activities across the economy.
16) Law and order - Law and order is about legal structure of the economy which plays a significant role in carrying out economical or money making or earning activity and it is the process of production of goods or services by carrying out one or more business activity. It is considering every unit pertains to a particular main activity. Such activities can pertain to making, providing, purchasing or selling of goods or services.
17) Capital Budgeting or Financial Resources - It involves the management of capital budgeting resources and accumulation of capital stock and making it work collaboratively with technological advancement.