The Economics of Happiness: Crash Course Econ

The video explores the pursuit of happiness, examining how income, employment, and economic models impact well-being. It discusses the diminishing returns of income on happiness, the negative effects of unemployment, and the Easterlin Paradox, which questions the link between national income and happiness. The video also highlights alternative measures of progress, such as Bhutan's Gross National Happiness, and critiques the focus on GDP as a sole indicator of societal progress.

What is one of the key factors mentioned that contributes to happiness according to the introduction?

• Owning a luxury car

• Traveling frequently

• Having a job with a salary of about $82,000

• Living in a big city

How does the introduction describe the self-help industry?

• As a small and niche market

• As a billion-dollar industry

• As a declining industry

• As irrelevant to happiness

What does the traditional economic model suggest about desires?

• Desires are limited and exhaustible

• Desires are unlimited and inexhaustible

• Desires are only about material goods

• Desires are irrelevant to happiness

What is the relationship between income and happiness according to recent studies?

• Happiness decreases with more income

• Beyond a certain point, more income has diminishing returns on happiness

• Income has no effect on happiness

• More income always leads to more happiness

What is the impact of unemployment on happiness?

• It only affects happiness in low-income countries

• It increases happiness

• It has no impact

• It significantly decreases happiness

What does the Easterlin Paradox suggest about happiness?

• Happiness is solely based on absolute income

• Happiness is unrelated to income

• Happiness decreases as income increases

• Happiness is more about relative status than absolute income

What is the hedonic treadmill?

• A financial strategy to manage income

• A concept that suggests happiness is constant regardless of circumstances

• A theory that people quickly adapt to changes in their life, returning to a baseline level of happiness

• A method to increase happiness through exercise

What alternative measure of progress does Bhutan use?

• Human Development Index

• Gross Domestic Product

• Gross National Happiness

• Net National Product

What did Robert Kennedy criticize about the focus on economic output?

• It measures everything that makes life worthwhile

• It is the only measure of a country's success

• It ignores important aspects of life like wisdom and compassion

• It accurately reflects the well-being of a nation

What does the United Nations resolution call for regarding happiness?

• To ignore happiness in economic development

• To prioritize GDP over happiness

• To focus solely on economic growth

• To give greater weight to happiness and well-being in development