happiness economics tell

Question 1

Economics

Answer 1

study of consumption of material things through which happiness is derived. Also described as a study of the behaviour of consumption

Question 2

2 assumptions of economics

Answer 2

1.opportunity cost
2.scarcity

Question 3

what is opportunity cost?

Answer 3

cost of choosing one alterative option over another- you give up the choice of choosing 1

Question 4

scarcity

Answer 4

basic economic problem, where unlimited wants are met with limited resources
the choice should be made based on:
-money, allocated in different sectors such as
transportation or healthcare

Question 5

how are opportunity cost and scarcity related ?

Answer 5

orld is limited in the amount of resources that are available, coupled with the fact that everything has a cost, tangible or intangible
in order to analyse the cost and make the most of limited resources there can be structured approach

Question 6

GDP

Answer 6

measures everything that is produced within the country
-it is the most used

Question 7

what is GDP used to measure?

Answer 7

measure of economic activity and it represents the total value added of all goods and services produced in a given period of time

Question 8

GDP expenditure approach formulae

Answer 8

C + G + I + Nx = GDP
-C=consumption -this is private spending on both durable and non-durable goods
-G=includes government spenditures such as
-I stands for investments in the country on capital equipment, stock/inventories and housing
-NX=net exports -all exports from within the country minus the imports

Question 9

4 ways increase in GDP lead to happiness?

Answer 9

1.Better access to public transportation
2.Improved resources for education
3.Increase in spending on healthcare
4.More opportunities for consuming goods

Question 10

economic prosperity

Answer 10

earns all the factors likely to increase alongside

Question 11

what 2 things was proposed as an alternative to GDP?

Answer 11

1.Human Development Index (HDI)
2.genuine Progress Indicator (GPI)-more relevant to the UK, which is the:the Life Satisfaction Index (LSI)

Question 12

what 2 things are the objective measures?

Answer 12

HDI and GPI

Question 13

what is an subjective measure ?

Answer 13

LSI

Question 14

objective outcome measure?

Answer 14

quantifiable and impartial (not involving emotions), which means that they are not subject individual interpretation (or again, emotion).

Question 15

what is 2 examples of objective outcome measure?

Answer 15

1.blood count
2.blood pressure

Question 16

subjective outcome measure?

Answer 16

it is a self-reported outcome which allows the assessment of how people feel about their lives, their quality of life

Question 17

2 examples of subjective outcome measure?

Answer 17

1.GDH measuring psychological health
2.health education

Question 18

happy economics

Answer 18

Research studying the relationship between happiness and income

Question 19

Easterlin paradox

Answer 19

paradox which shows that long term increase in economic growth doesn’t lead to increase in happiness

Question 20

hedonic adaption (also known as interpersonal adaptation)

Answer 20

idea that an individual’s level of happiness will return to an individualistic baseline despite any positive or negative experiences

Question 21

what is the EQ-5D ?

Answer 21

generic measurement of health status and allows comparison across different disease areas