econ092111 - Microecon Sept. 21st, 2011 Review for PS 1...

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Microecon Sept. 21 st , 2011 Review for PS 1 THOM 106, Sept. 29 th , 5 – 6:30 PM Income and Happiness Orthodox economists expect that the more we have, the happier we will be. The key to happiness is having lots of toys. If you don't want something, just throw it out. This might work for Robinson Crusoe. If he had more stuff, he would have used it, Or else left it in a hole in the ground. The more you have, the happier you get. We are much richer than in the past. We have more stuff. European per capita income – stable/unchanging US per capita income has grown nearly 2% per year for two centuries. increasing at a faster rate than the trendline getting richer at an accelerated rate Per capita income – how much money there is in the country on average; per person. Within countries, the rich are happier. (more stuff.) So are people in the middle class . But increasing aggregate wealth hasn't made us happier on average! Americans have much more money than before but are no happier. True for Europeans and
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This note was uploaded on 04/04/2012 for the course ECON 103 taught by Professor Voorheis during the Fall '08 term at UMass (Amherst).

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econ092111 - Microecon Sept. 21st, 2011 Review for PS 1...

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