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Passage: 'Despite higher GDP, surveys repeatedly find that average happiness in India has not risen over the last two decades. Many sociologists are puzzled by this.' Which of the following, if TRUE, BEST explains the apparent paradox?
AGDP has been measured carefully
BHappiness research consistently finds that beyond a moderate threshold, ABSOLUTE income matters less for happiness than RELATIVE position; growing inequality has meant that many feel relatively worse off even as the country grows richer
CSurveys are difficult to conduct
DAll countries have similar trends
Answer & Solution
Correct answer: B. Happiness research consistently finds that beyond a moderate threshold, ABSOLUTE income matters less for happiness than RELATIVE position; growing inequality has meant that many feel relatively worse off even as the country grows richer
The classical 'Easterlin paradox' explanation. The mediating mechanism is relative-position salience; when inequality grows, average GDP rise does not translate into average happiness rise.
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