**3.1 Work and leisure**

An individual needs to decide how to allocate time between market and nonmarket activities.

**Market activity:** activities that include financial transactions and done with intention of earning money or profit [1]:

• Work (for pay)

**Nonmarket activity:** activities that do not include any financial transactions and done without any intention of earning money or profit [1]:

• Leisure


For the sake of simplicity, we divide an individual's activities into: *work and leisure*. Note that *leisure* here includes all activities that are not *work*.
