Answer to Question #284750 in Macroeconomics for sar

Question

True/False/Uncertain. Why? (Justify your answer with a short argument.) 

 Evidence suggests that happiness in rich countries increases with output per person

Answer 1

$Solution$

Uncertain.

When per capita productivity rises to around $20,000, there is evidence that happiness rises. The relationship is not as strong after this stage. As a result, in wealthy countries, happiness does not always correlate with per capita productivity.