Opportunity Cost for Leisure among the Rich and the Poor Essay (Essay Sample)

Opportunity Cost for Leisure among the Rich and the Poor
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Opportunity Cost for Leisure among the Rich and the Poor
In the past, leisure was deemed a preserve for those with higher incomes since they could manage to sustain the costs associated with it, such as clearing hefty bills. However, in the contemporary world, the poor spend much time on leisure than the rich. The changes in the trends are attributed to the changing economic landscapes, where those working for long hours tend to become more innovative and are rewarded significantly. Given the modern world's globalized nature, the well-educated and wealthy individuals find it easier to acquire hugely rewarding and yet demanding jobs within society. The rich are always engaged in various responsibilities or duties, which directly increase their incomes; thus, leisure becomes a cost to them, contrary to the poor. The decisions on the time to spend on leisure among the rich and the poor individuals are mainly influenced by income and substitution effects.
According to Vaccaro, Jansen, Van & Volberda (2011), with the constant economic landscape changes, business owners and top-level managers are forced to become more innovative to survive in the competitive environment. They do spend a considerable amount of time in research to develop solutions to their businesses’ problems. Consequently, the rich tend to substitute leisure for work or business. Much of their time is spent at the workplace conducting meetings, presentations, signing or negotiating contracts, and supervising their subordinates. However, the poor tend to take less responsibility in the businesses' activities, and most of them work on only assigned duties or part-time. That allows them ample time to enjoy leisure activities.