9. Dont' worry be happy

Question 1

What are the economics of happiness?

Answer 1

The economics of happiness or happiness economics is the quantitative and theoretical study of happiness, positive and negative effect, well-being, quality of life, life satisfaction and related concepts, typically combining economics with other fields such as psychology, health and sociology.

Question 2

What is ‘well-being? (ONS)

Answer 2

Societal and personal well-being in the UK looking beyond what we produce, to areas such as health, relationships, education and skills, what we do, where we live, our finances and the environment. This data comes from a variety of sources.

Question 3

What are the 9 ONS sources of well being?

Answer 3

1. Personal well-being- satisfaction with life
2. Relationships
3. Health
4. Work- what we do
5. Home- where we live
6. Personal finance
7. Education and skills
8. Governance (trust in government etc)
9. The natural environment

Question 4

What is the Easterlin Paradox?

Answer 4

The Easterlin Paradox concerns whether we are happier and more contented as our living standards improve.

Question 5

What are the main points made in the Easterlin Paradox?

Answer 5

Within a society, rich people tend to be much happier than poor people.

2) But, rich societies tend not to be happier than poor societies (or not by much).
3) As countries get richer, they do not get happier.

Easterlin argued that life satisfaction does rise with average incomes but only up to a point. Beyond that the marginal gain in happiness declines.