Consumer happiness Flashcards
1
Q
What is the relation between happiness and income?
A
There is a positive relationship between income and happiness At low incomes
This is seen as when people with low incomes get more money they are happier
2
Q
What is the Easterlin paradox?
A
An increase in consumption will make people happier if their basic human needs are not satisfied
But if someone already has money consumption and spending will not increase their happiness
3
Q
What is the Affects of high social status?
A
A high social status makes people happier
If I am the richest out of all my friends I will be the happiest
In comparison to if I was the poorest out of all my friends
4
Q
What are the other factors the affect welfare?
A
Real GDP per capita Health and life expectancy Freedom Having someone No corruption Generosity
