Tutorial 7: Student Selected Topic: Meaningful work

Question 1

“Research suggests a weak correlation between income and happiness”. Explain three reasons.

Answer 1

1) Hedonic adaptation: increase in happiness from income have a transitory effect.
2) Consumption of material goods has little effect on well-being.
3) Relative income rather than the level of income affects well-being.

Question 2

What is the difference between first and second order of desire?

Answer 2

First order = a desire for anything (Smoking a cigarette)
Second order = a desire for a desire (Desire to not smoke a cigarette)