Briefly explain the relationship between output per capita and happiness. Specifically, to what extent are these two variables related?
What will be an ideal response?
Research by Richard Layard indicates that the proportion of very happy people is higher among the rich than among the poor. At the country level, at low levels of output per capita, increases in output per capita do seem to cause increases in happiness. However, this relation is not as strong for those countries with higher levels of output per capita.
You might also like to view...
Crowding out is a reduction in private investment caused by government budget deficits, and may partially offset the expansionary effects of fiscal policy. The exact degree of crowding out depends on all of the following except
A) how much of the deficit is financed by households, firms, and governments outside of the United States. B) how much real interest rates increase. C) the level of the marginal corporate income tax rate. D) the sensitivity of investment to the real interest rate.
The XYZ Company has estimated expected cash flows for 1996 to be as follows:
Probability Cash flow .10 $120,000 .15 140,000 .50 150,000 .15 180,000 .10 210,000 Calculate: a. expected value b. standard deviation c. coefficient of variation d. the probability that the cash flow will be less than $100,000