Which of the following is a characteristic of the 'Easterlin Paradox'?
A. Income has no relation to happiness at any level
B. Only relative income matters and absolute income is irrelevant even within countries
C. Within countries, higher income is associated with higher happiness, but over time average happiness does not rise with average income
D. Happiness always rises proportionally with income both within and across countries
Answer: Option C
Solution (By JKSSB Mock Tests)
The Easterlin Paradox observes that, while richer individuals within a country tend to report higher happiness, average national happiness does not increase systematically as national income grows over the long run.
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