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The Psychology of Economic Happiness

Description: This quiz is designed to assess your understanding of the psychology of economic happiness. It covers various aspects of economic happiness, including its determinants, measurement, and implications for economic policy.
Number of Questions: 15
Created by:
Tags: economics economic psychology happiness well-being
Attempted 0/15 Correct 0 Score 0

What is the most widely used measure of economic happiness?

  1. Gross Domestic Product (GDP)

  2. Gross National Happiness (GNH)

  3. Life Satisfaction Index (LSI)

  4. Happy Planet Index (HPI)


Correct Option: C
Explanation:

The Life Satisfaction Index (LSI) is a widely used measure of economic happiness. It is based on surveys that ask people to rate their overall satisfaction with their lives on a scale from 0 to 10.

Which of the following is NOT a determinant of economic happiness?

  1. Income

  2. Health

  3. Social relationships

  4. Climate


Correct Option: D
Explanation:

Climate is not a determinant of economic happiness. Income, health, and social relationships are all important determinants of economic happiness.

According to the Easterlin Paradox, what happens to economic happiness as income increases?

  1. It increases at a constant rate

  2. It increases at a decreasing rate

  3. It remains constant

  4. It decreases


Correct Option: B
Explanation:

The Easterlin Paradox states that economic happiness increases at a decreasing rate as income increases. This means that as people get richer, they experience less additional happiness from each additional dollar of income.

Which of the following is NOT a policy implication of the psychology of economic happiness?

  1. Governments should focus on increasing GDP

  2. Governments should focus on increasing social capital

  3. Governments should focus on reducing income inequality

  4. Governments should focus on promoting sustainable development


Correct Option: A
Explanation:

Increasing GDP is not a policy implication of the psychology of economic happiness. The other options are all policy implications of the psychology of economic happiness.

What is the name of the theory that states that people's happiness is determined by their comparison of their own situation to the situations of others?

  1. The Theory of Social Comparison

  2. The Theory of Relative Deprivation

  3. The Theory of Reference Groups

  4. The Theory of Status Attainment


Correct Option: A
Explanation:

The Theory of Social Comparison states that people's happiness is determined by their comparison of their own situation to the situations of others.

Which of the following is NOT a type of social comparison?

  1. Upward comparison

  2. Downward comparison

  3. Lateral comparison

  4. Imaginary comparison


Correct Option: D
Explanation:

Imaginary comparison is not a type of social comparison. Upward comparison, downward comparison, and lateral comparison are all types of social comparison.

What is the name of the phenomenon that occurs when people's happiness decreases after they experience a positive event?

  1. The Hedonic Treadmill

  2. The Adaptation Level Theory

  3. The Contrast Effect

  4. The Peak-End Rule


Correct Option: A
Explanation:

The Hedonic Treadmill is the phenomenon that occurs when people's happiness decreases after they experience a positive event. This is because people quickly adapt to positive events and start to take them for granted.

Which of the following is NOT a strategy for increasing economic happiness?

  1. Spending money on experiences rather than material goods

  2. Spending time with loved ones

  3. Getting enough sleep

  4. Eating a healthy diet


Correct Option: D
Explanation:

Eating a healthy diet is not a strategy for increasing economic happiness. The other options are all strategies for increasing economic happiness.

What is the name of the theory that states that people's happiness is determined by their expectations?

  1. The Theory of Subjective Well-being

  2. The Theory of Psychological Well-being

  3. The Theory of Hedonic Adaptation

  4. The Theory of Expectancy Theory


Correct Option: D
Explanation:

The Theory of Expectancy Theory states that people's happiness is determined by their expectations. This means that people who have high expectations for their lives are more likely to be happy than people who have low expectations for their lives.

Which of the following is NOT a factor that contributes to subjective well-being?

  1. Positive emotions

  2. Negative emotions

  3. Life satisfaction

  4. Purpose in life


Correct Option: B
Explanation:

Negative emotions are not a factor that contributes to subjective well-being. Positive emotions, life satisfaction, and purpose in life are all factors that contribute to subjective well-being.

What is the name of the phenomenon that occurs when people's happiness increases after they experience a negative event?

  1. The Hedonic Treadmill

  2. The Adaptation Level Theory

  3. The Contrast Effect

  4. The Peak-End Rule


Correct Option: C
Explanation:

The Contrast Effect is the phenomenon that occurs when people's happiness increases after they experience a negative event. This is because people compare their current situation to their previous situation and find that it is better than they expected.

Which of the following is NOT a type of economic happiness?

  1. Subjective well-being

  2. Psychological well-being

  3. Material well-being

  4. Social well-being


Correct Option: C
Explanation:

Material well-being is not a type of economic happiness. Subjective well-being, psychological well-being, and social well-being are all types of economic happiness.

What is the name of the theory that states that people's happiness is determined by their social relationships?

  1. The Theory of Social Comparison

  2. The Theory of Relative Deprivation

  3. The Theory of Reference Groups

  4. The Theory of Social Support


Correct Option: D
Explanation:

The Theory of Social Support states that people's happiness is determined by their social relationships. This means that people who have strong social relationships are more likely to be happy than people who have weak social relationships.

Which of the following is NOT a strategy for increasing social well-being?

  1. Spending time with loved ones

  2. Volunteering in the community

  3. Getting involved in politics

  4. Donating to charity


Correct Option: C
Explanation:

Getting involved in politics is not a strategy for increasing social well-being. The other options are all strategies for increasing social well-being.

What is the name of the theory that states that people's happiness is determined by their sense of purpose in life?

  1. The Theory of Subjective Well-being

  2. The Theory of Psychological Well-being

  3. The Theory of Hedonic Adaptation

  4. The Theory of Meaning in Life


Correct Option: D
Explanation:

The Theory of Meaning in Life states that people's happiness is determined by their sense of purpose in life. This means that people who have a strong sense of purpose in life are more likely to be happy than people who do not have a strong sense of purpose in life.

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