Single correct option
The best summary of the paragraph is required.
Economists studying happiness surveys have repeatedly found that, within a given country and year, richer people report being happier than poorer people, yet as whole countries have grown richer over decades, average reported happiness has often stayed roughly flat. One reconciliation is that people judge their well-being relative to those around them rather than in absolute terms, so when everyone's income rises together, relative position—and hence reported happiness—does not change much even though everyone is objectively better off.
Economists studying happiness surveys have repeatedly found that, within a given country and year, richer people report being happier than poorer people, yet as whole countries have grown richer over decades, average reported happiness has often stayed roughly flat. One reconciliation is that people judge their well-being relative to those around them rather than in absolute terms, so when everyone's income rises together, relative position—and hence reported happiness—does not change much even though everyone is objectively better off.
- A. Money has no relationship whatsoever to happiness, as proven by decades of survey data across countries.
- B. Richer individuals within a country report greater happiness than poorer ones, but national happiness often fails to rise with national income, a pattern one theory attributes to people judging well-being relative to others rather than in absolute terms.
- C. Countries should stop pursuing economic growth since it does not make citizens happier over time.
- D. Happiness surveys are unreliable because they contradict basic economic theory about income and welfare.
Show answer and solution
Answer: (B) Richer individuals within a country report greater happiness than poorer ones, but national happiness often fails to rise with national income, a pattern one theory attributes to people judging well-being relative to others rather than in absolute terms.
The paragraph presents two findings (within-country income predicts happiness; national happiness stays flat as income rises) and one explanatory theory (relative judgement). Option 2 reflects all three elements accurately. Option 1 overstates 'no relationship,' contradicting the within-country finding. Option 3 is a policy prescription never suggested. Option 4 mischaracterises the paragraph, which explains the data rather than dismissing it.
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