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Questions and Answers
What is the annual salary for Option 1?
How many hours of sleep can be expected on average in Option 2?
Which option provides a higher salary but less sleep?
Which statement best summarizes the trade-off between the two job options?
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If happiness is based on sleep and income, which option would most likely provide the highest happiness level?
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What is the primary focus of the empirical work conducted by Armin Falk and colleagues?
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Which brain region is primarily engaged in the registration of primary rewards according to the research?
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What method was used to study the brain activity of subjects performing monetary tasks?
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What was observed to vary in relation to the payment comparison subject in the study?
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Which of the following articles discusses the joy of winning and gender in relation to brain imaging evidence?
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What is the primary reason people make choices regarding sleep and income?
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Which group had the highest percentage of respondents indicating that more sleep would make them happier?
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What did the majority of respondents prefer when forced to make a choice between sleep and income?
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Which of the following percentages reflected respondents who chose more sleep over more income?
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How do people generally assess happiness in the context of income and cognitive well-being?
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What was the least percentage of respondents who said that more sleep would make them happier?
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Why might a person still choose less sleep if they believe more sleep would make them happier?
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What overall conclusion can be drawn from the collected data regarding people's choices about sleep and income?
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What was the main issue with Kahneman and Deaton's measure of happiness?
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What does the correlation of 0.12 indicate in the context of household income and life satisfaction?
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How did Killingsworth's approach differ from Kahneman and Deaton's?
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What effect does higher income have on happiness among those at the bottom of the happiness distribution?
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Which type of data is necessary for measuring within-person changes in satisfaction due to income changes?
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What is a key limitation of Kahneman and Deaton's data collection method?
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What was the standardized mean for life satisfaction in the British Household Panel Survey?
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What differentiates the measures of happiness between Kahneman and Deaton and those in longitudinal studies?
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What is the association between a 1% increase in household income and life satisfaction without controls?
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What is the estimated correlation between within-person changes in income and life satisfaction after adding individual fixed effects?
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How does the relationship between income and life satisfaction differ when observing within-person changes compared to between-person differences?
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What additional factors are held constant when assessing the relationship between income and life satisfaction with controls?
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What standard deviation increase in life satisfaction is associated with a 1% increase in household income when comparing with controls?
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What is the primary purpose of adding individual fixed effects in this analysis?
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In terms of life satisfaction increase, which of the following reflects the impact of increasing household income on a societal level?
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Which scenario describes a comparison made without controls in assessing life satisfaction?
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Study Notes
Happiness and Income
- Most people believe that being happy is essential to living a fulfilling life.
- Many people prioritize happiness over income despite knowing money could make them happier.
- People are willing to sacrifice sleep for higher income, even though they believe more sleep would lead to greater happiness.
- Researchers have conducted polls and utilized fMRI scans to study the relationship between happiness and income.
Cross-Sectional Evidence
- People with higher incomes report higher levels of life satisfaction.
- Higher incomes do not guarantee higher levels of happiness.
- People with higher incomes may report higher levels of happiness due to a "ceiling effect."
- The ceiling effect prevents researchers from accurately measuring different degrees of happiness at the high end of the scale.
Within-Person Evidence
- Researchers have examined the correlation between changes in income and life satisfaction over time.
- They have used longitudinal datasets, such as the British Household Panel Survey, to track individuals over time.
- An increase in personal income is associated with an increase in personal life satisfaction.
- The correlation between changes in income and life satisfaction is stronger at the individual (within-person) level than at the group (between-person) level.
Brain Activity and Income
- Researchers have utilized fMRI scans to measure the activity of the brain's reward system.
- These studies have shown that a person's perception of income in relation to others affects their brain's reward response.
- Studies have found differences in brain activity for subjects who receive different incomes, even when they are working on the same task.
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Description
Explore the complex relationship between happiness and income through various research findings. This quiz delves into both cross-sectional and within-person evidence, examining how income affects life satisfaction and the factors that influence our perceptions of happiness. Test your knowledge on the interplay between financial status and personal well-being.
