The Economics of Happiness: Money and Well-Being

The video explores the relationship between economics and happiness, questioning traditional economic models that equate more income with greater happiness. It discusses the diminishing returns of income on day-to-day happiness, the impact of unemployment, and the influence of relative income on well-being. The Easterlin Paradox and hedonic adaptation are examined, suggesting that status and adaptation affect happiness. The video concludes by highlighting alternative measures of progress, like Bhutan's Gross National Happiness, and critiques the focus on GDP as a sole indicator of societal well-being.

What is one of the inalienable rights mentioned in the Declaration of Independence?

• The pursuit of health

• The pursuit of education

• The pursuit of happiness

• The pursuit of wealth

What has recent economic and psychological research questioned about traditional economic thought?

• The correlation between spending money and happiness

• The need for unlimited desires

• The value of self-help books

• The importance of life coaching

At what annual income level do diminishing returns on happiness begin, according to a 2010 study adjusted for inflation?

• $100,000

• $75,000

• $82,000

• $90,000

How does unemployment affect happiness?

• Has no effect on happiness

• Increases happiness due to free time

• Only affects happiness in low-income countries

• Decreases happiness significantly

What hypothesis suggests our happiness is relative to our neighbors' wealth?

• Relative wealth hypothesis

• Economic disparity hypothesis

• Ranked-income hypothesis

• Social comparison theory

What does the 'Easterlin Paradox' suggest about income and happiness at a national level?

• National income has no effect on happiness

• Happiness does not always increase with national income

• Happiness increases at the same rate as national income

• Happiness decreases as national income increases

What concept describes the phenomenon of quickly adapting to changes, making them less impactful over time?

• Status quo bias

• Wealth fatigue syndrome

• Hedonic treadmill

• Economic adaptation

According to Stevenson and Wolfers, what is the relationship between GDP per capita and well-being?

• Inverse relationship

• No clear relationship

• Direct relationship

• Variable relationship based on country wealth

What alternative to GDP did Bhutan adopt for measuring progress?

• Gross National Well-being

• Gross National Happiness

• Gross Social Product

• Gross Environmental Health

What did Robert Kennedy criticize about the Gross National Product?

• Its focus on economic output alone

• Its exclusion of environmental health

• Its complexity and inaccuracy

• Its inability to measure true happiness