Research by Richard Layard indicates that an increase in a country's level of output per capita will
A)always increase happiness in that country.
B)always decrease happiness in that country.
C)generally have no effect on happiness in that country.
D)increase happiness in that country if output per capita is relatively low.

Question

Quizplus · Accepted Answer

Layard's research suggests that an increase in output per capita will only lead to an increase in happiness if the current output per capita is relatively low. Beyond a certain point, increasing output per capita has diminishing returns in terms of happiness. This is due to factors such as inequality, social norms, and the diminishing marginal utility of income. Therefore, Option D is the correct choice.

Research by Richard Layard Indicates That an Increase in a Country's