Select all that apply to the Easterlin paradox: A.) Individuals who are rich are

Question

Select all that apply to the Easterlin paradox:
A.) Individuals who are rich are only slightly happier than someone from middle class
B.) Poor individuals are happier than rich
C.) There exists diminishing returns for money.
D.) Money buys happiness if you are very poor.
E.) Money buy happiness no matter how much you already have Select all that apply to the Easterlin paradox:
A.) Individuals who are rich are only slightly happier than someone from middle class
B.) Poor individuals are happier than rich
C.) There exists diminishing returns for money.
D.) Money buys happiness if you are very poor.
E.) Money buy happiness no matter how much you already have
A.) Individuals who are rich are only slightly happier than someone from middle class
B.) Poor individuals are happier than rich
C.) There exists diminishing returns for money.
D.) Money buys happiness if you are very poor.
E.) Money buy happiness no matter how much you already have

Explanation / Answer

This paradox states that life satisfaction increases with increase in average income only upto a point. Beyond that poiint the marginal gain in happiness declines with increase in income. Hence after some point diminsihing return for money occurs.

Thats why people with great poverrty gets more hapiness when their income rise than those who are already better off than the poor.

Thus, the followings are apply accoridngto the paradox -

There exists diminishing returns for money.

Individuals who are rich are only slightly happier than someone from middle class

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