Would You be Happier If You Were Richer?
How does Kahneman believe that expectations affect happiness?
A) Happiness is determined by the objective reality of people's circumstances, and expectations play no role.
B) Happiness is solely determined by people's expectations, regardless of their circumstances.
C) People's expectations play a role in shaping their perceptions of their circumstances, which in turn affects their happiness.
D) People's expectations have no impact on their happiness, as happiness is determined by external factors such as wealth and material goods.
C) People's expectations play a role in shaping their perceptions of their circumstances, which in turn affects their happiness.
What theory developed by Helson proposes that extreme good fortune won’t increase happiness as much as we might think?
Adaptation level theory
According to Easterlin, what is the relationship between income and happiness in wealthy countries?
a) Happiness levels increase with income
b) Happiness levels are constant with increased income
c) Happiness levels decrease with increased income
b) Happiness levels are constant with increased income
What is the Human Development Index (HDI), according to the article?
a) A measure of economic success
b) A measure of human progress
c) A measure of human well-being
d) A measure of environmental sustainability
b) A measure of human progress
According to Kahneman, what is the main reason why people's happiness levels do not increase with increased wealth?
A) hedonic adaptation
B) focusing illusion
c) both a and b
d) b only
c) both a and b
As discussed in the article, Contrast is one limit to good fortune. What description best describes the concept of Contrast?
a) An event like winning the lottery may make old, more ordinary events, seem less enjoyable.
b) When one wins the lottery they tend to brag to others around them
c) The excitement of winning the lottery wears off as time goes on
d) Winning the lottery doesn’t make people as happy as one might think
a) An event like winning the lottery may make old, more ordinary events, seem less enjoyable.
According to the article which statement is true:
a) Decision utility only plays a role in shaping people's happiness
b) Experienced utility only plays a role in shaping people’s happiness
c) Both decision and experienced utility play a role
c) both decision and experienced utility play a role
What does the author argue about traditional measures of economic success in relation to well-being?
a) They accurately reflect human well-being
b) They are limited in their ability to measure well-being
c) They are the only reliable measures of well-being
d) They are unreliable and should be replaced
b) They are limited in their ability to measure well-being
What hypothesis did Duesenberry, Easterlin and Frank agree to?
Relative income hypothesis
Habituation is one limit to good fortune. What description best describes the concept of Habituation?
a) Experiencing good fortune will permanently change the level of an individual’s long-term happiness
b) One’s happiness is dependent on their social environment
c) When an individual experiences extreme bad fortune, they will never experience happiness ever again
d) The feeling of excitement resulting from good fortune will eventually wear off over time
d) The feeling of excitement resulting from good fortune will eventually wear off over time
Two lies and one truth:
1. The Easterlin Paradox states that income does not have a significant impact on happiness within a given country.
2. The Easterlin Paradox argues that while income and happiness are positively correlated, the relationship between the two levels wears off once a certain income level is reached.
3. According to the Easterlin Paradox, a rise in income can lead to an increase in happiness if it leads to increased social comparisons and a sense of relative deprivation.
1 and 3 are lies
2 is true
What is the purpose of the alternative measures of progress suggested in the article?
a) To provide a more complete picture of human progress
b) To replace traditional measures of economic success
c) To make economic growth the sole focus of policy-making
d) To diminish the importance of economic growth
a) To provide a more complete picture of human progress