Reference no: EM133303668

Questions

1. The "preference drift" means

A. What people consider "sufficient" income increases with their actual income

B. Poor people have higher income aspirations relatively to their current income

C. Rich people have higher income aspirations relatively to their current income

D. All of the above

2. Research shows that people are the happiest

A. If they have high income aspirations

B. If they have low income aspirations

C. If their income aspirations are significantly above their current income

D. If their income aspirations are close to their current income

3. After Unification of East Germany with West Germany

A. East Germans' happiness increased

B. East Germans' happiness decreased

C. West German's happiness increased

D. West German's happiness decreased

4. "Hard work externality" means that

A. If I work harder and increase my income, I make others less happy

B. If I work harder and increase my income, I make others more happy

C. Unemployment benefits make people stay unemployed longer

D. Hard work is important for happiness

5. People work longer hours in US than in Europe; this can be because

A. There is a higher reward to working in the US because taxes are lower

B. The work is more satisfying in the US

C. The leisure is less satisfying in the US

D. We are stuck in a bad work/life equilibrium when everyone works more than optimal

E. All of the above