Some economists cite the Easterlin paradox to justify redistribution

Question

Some economists cite the Easterlin paradox to justify redistribution of wealth from higher earners to programs designed to benefit disadvantaged individuals and thus improve the standard of living in the nation as a whole. Easterlin noticed that, when surveyed for international studies designed to objectively measure and compare the happiness levels of nations, citizens of several developed countries, but most notably the United States, report that as income increases, their happiness level does not commensurately increase. Therefore, these economists argue, rather than pursuing improvements in gross national product (GNP) per person, governments of developed nations should divert funds to social projects that have the potential to reduce inequality.

Worstall disagrees, arguing that, after basic needs are met, individuals’ levels of satisfaction are affected by the prosperity of those around them and the overall trend of their nation’s economy, and so higher levels of per capita GNP remain a worthy goal. He suggests that happiness is correlated with the direction and rate of change in a nation's GNP, not with its absolute size.

Weimann, Knabe, and Schob criticize Easterlin's methodology, citing Deaton’s observations that the disproportionate number of wealthy countries, the inclusion of many countries with historically unstable governments and economies, and the limitation of survey respondents to the wealthy citizens of poorer countries distort Easterlin’s data. These economists also point to Stevenson and Wolfer's research, which indicates that the exact wording of the questions in Easterlin's survey changed across the years; respondents who had the same overall satisfaction received lower survey scores in later years due solely to differences in the questions.    1 
 1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP
B. included too many developing nations with low per capita GNP levels in his survey
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries
D. included citizens of too many countries that do not have settled political systems
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens

2 
 2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure. 
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.

3 
 3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics.
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics. 
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.

RC Butler Competition 2021  -  Participate and Win!   
Passage # 6 Date: 5-Jan-2021
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Sajjad1994 · Accepted Answer

Official Explanation

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

Analyze the question stem

The question asks what the text  "states"  and so is a Detail question. Look up why Weimann, Knabe, and Sch6b criticized Easterlin.

Research the relevant text

The views of Weimann, Knabe, and Schéb are discussed in the third paragraph. Their criticisms are directed toward Easterlin's methods; specifically, they believe that his data were biased due to the countries selected and the questions asked.

Make a prediction

Weimann, Knabe, and Schéb believe Easterlin's study included too many wealthy countries and too many nations with unstable governments and economies. They also complain that the questions changed over the years, introducing distortions in the data. Look for one of these ideas in the choices but expect that the correct answer may express the right idea using different language than in the passage.

Evaluate the choices

(D)  matches the prediction and is correct. Countries without settled political systems corresponds with  "countries with historically unstable governments”  in the  third paragraph.

(A)  is Worstall's view stated in the second paragraph, not the view of Weimann, Knabe, and Schob.

(B)  is a 180 and is incorrect; the criticism of Easterlin’s data is that too many wealthy countries were included.

(C)  is a distortion of information in the passage; the critics cite concerns with Easterlin's methodology, not with how his results are applied. Also, although  “some economists"  in the first paragraph use Easterlin's results to justify income redistribution, the passage does not state that Easterlin himself did so.

(E)  is also a distortion of information in the passage. One criticism is that Easterlin overrepresented wealthier citizens of poorer countries, but there's no indication he did so by limiting his survey to those who could read and write.

Answer: D

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

Analyze the question stem

This question requires you to find an answer choice that supports an argument made in the passage, so it is a Strengthen question. It's unusual to see this type of question on a Reading Comprehension passage, but it’s a common among Critical Reasoning questions. The conclusion you must find evidence to support is that of the economists discussed in the  first paragraph.

Research the relevant text

The economists in the first paragraph believe Easterlin is correct: once basic needs are met, increases in income do not yield equivalent increases in happiness. Since the additional income is not making the earner more happy, these economists argue that excess income should be moved to help less fortunate members of society, raising the level of happiness of the nation as a whole.

Make a prediction

The correct answer will provide evidence that, as Easterlin claims, more affluence in the population does not make people happier or that redistribution of wealth makes recipients happier.

Evaluate the choices

(A)  Strengthens Easterlin's view and is correct. This comparison between a wealthy country that is getting wealthier and a country with a significantly disrupted economy supports the idea that happiness does not depend on GNP.

(B)  is the opposite of Easterlin's view and is incorrect. If happiness levels were found to increase with GNP, this would weaken Easterlin's conclusion and, in turn, the conclusion of the economists who cite his work.

(C)  is incorrect because this comparison does nothing to suggest that happiness is independent of GNP.

(D)  is incorrect because it does not connect GNP and happiness levels and so would have no effect on these economists’ views.

(E)  connects increasing GNP with increasing happiness and so would weaken these economists' views.

Answer: A

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

Analyze the question stem

The question asks you to make an inference about Stevenson and Wolfer’s study. A GMAT inference will not be directly stated in the passage but will require you to assemble support for the correct answer from different statements in the passage.

Research the relevant text

Stevenson and Wolfer are discussed in the third paragraph, where Weimann, Knabe, and Schdb's critique of Easterlin's idea is discussed. Stevenson and Wolfer’s research is cited by the other three economists. Stevenson and Wolfer criticized Easterlin's methodology because his surveys used different questions in different years and those changes caused respondents with the same happiness levels to receive lower scores in later years.

Make a prediction

The correct answer will align with the idea that changes in Easterlin’s survey questions produced data that some economists use to cast doubt on his theory.

Evaluate the choices

(C)  matches the prediction and is correct.

(A)  is incorrect because the motivation of Stevenson and Wolfer is never mentioned in the passage.

(B)  is too extreme and is incorrect; the text never says Stevenson and Wolfer's study invalidated Easterlin's work, only that some economists use it as evidence against Easterlin. Perhaps Easterlin responded to the criticism, or perhaps some of his analysis still stands up to scrutiny.

(D)  is a distortion of information in the passage: Stevenson and Wolfer's study indicated that the measured life satisfaction decreased even though participants’ actual happiness remained constant.

(E)  is also a distortion and is incorrect; it describes Deaton's criticism, not Stevenson and Wolfer's.

TAKEAWAY:  Don't be afraid of the  "obvious"  choice; if you can support the choice from the passage, it is the correct answer.

Answer: C

Vie3nrose · Answer

Question 1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP
 INCORRECT   -- PG1 states that Easterlin believed the opposite (that happiness does NOT increase proportionately with income/GNP increases)
 
B. included too many developing nations with low per capita GNP levels in his survey
 INCORRECT   -- PG3 states that they believe Easterlin included a "disproportionate number of wealthy countries", aka. developed countries with high GNP per capita (the opposite of this answer choice)
 
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries
 INCORRECT   -- PG1 does state that Easterlin advocated for income redistribution, but PG3 does not indicate that W/K/S disagreed with this point in particular
 
D. included citizens of too many countries that do not have settled political systems
 CORRECT   -- PG3 indicates that W/K/S believes "the inclusion of many countries with historically unstable governments   and economies" distorted E's data
 
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens
 INCORRECT   -- correctly cites that they believed E's data overrepresented views of wealthy people in poorer nations, but the author did not mention that this was because only literate citizen were surveyed.

Question 2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?
 
A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.
 CORRECT   -- PG1 cites E's studies on wealthy countries "as income increases, their happiness level does not commensurately increase". This answer choice is an example of how a wealthy/growing economy isn't reflecting more happiness than a war-torn country (that is presumably not wealthy or growing) 
 
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.
 INCORRECT   -- This answer choice states that more wealth/growth/GNP = more happiness (the opposite of E's studies showing that "as income increases, their happiness level does not commensurately increase")
 
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
 INCORRECT   -- This can support the view if both countries are not showing an increase in happiness proportionate with the increase in GNP. However, if both countries are showing an increase in happiness proportionate with GNP growth, then it is not aligned to PG1. 
 
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.
 INCORRECT   -- PG1 doesn't not discuss how different types of government can affect happiness so this answer choice is out of scope.
 
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.
 INCORRECT   -- PG1 doesn't not discuss how different types of government (corrupt or just) can affect happiness, but if happiness levels correlate with GNP increases, it demonstrates the opposite of E's studies.

Sumi1010 · Answer

The short note on the passage.

P1 - Economists support redistribution of wealth , cite Easterlin paradox : Income increases, happiness doesn't. 
 Reduce inequality > increase GNP
P2 - Worstall : GNP remain a worthy goal. happiness correlated with the change in GNP.
P3- Weimann, Knabe, and Schob criticize Easterlin's survey.

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A.  attributed  measures of greater happiness to a rising trend in GNP
 Not mentioned. 
B. included  too many developing nations with low per capita GNP  levels in his survey
 Not mentioned. The all we know is the survey's inclusion of many countries with historically unstable governments and economies. 
C. used the results of his research to advocate for greater redistribution of  wealth in more developed countries 
 Not mentioned. 
D. included citizens of too many countries that do not have settled political systems
 Correct. ( ...the inclusion of many countries with historically unstable governments and economies, and the limitation of survey respondents to the wealthy citizens of poorer countries distort the data ) 
E.  overrepresented the views of wealthy  people in poorer nations by surveying only literate citizens
 The survey had limitations of wealthy respondents.

D

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as  a war-torn country  with less developed infrastructure.'
 Not necessarily true. The economists concluded about the citizens of the developed nations 
B. A wealthy nation with a growing economy reports levels of  happiness that correlate well with increases in per capita GNP. 
 This weakens the view of the economists . 
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
 Supports the economists. Many wealthy nations show similar results on happiness wrt GNP. 
D. A country that has experienced setbacks in its efforts to establish a  democratically “elected government  reports increasing levels of happiness.
 Democratic government was never into the consideration of the economists. 
E. A developing country with a growing economy but a corrupt government reports levels of  happiness that correlate well with increases in per capita GNP. 
 In any case, if the happiness correlates well with GNP, this brings economists views into question.

C

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

A. Stevenson and Wolfer's reason for undertaking their  research was to undermine Easterlin's analysis  of life satisfaction statistics.
 Their research may not be intended to undermine Easterlin, though it brought it into questions.  
B. Stevenson and Wolfer's results  invalidate Easterlin's analysis of life satisfaction statistics. 
The results brought the analysis into question because of not very accurate data (obtained by the changed questions). The analysis might be correct but the underlying data might not be accurate.
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.
 Correct.  
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed,  measures of happiness were constant  across the years.
 No, the scores had lowered. 
E. Stevenson and Wolfer  uncovered a bias in Easterlin's research  toward wealthier respondents in undeveloped countries.
 No, they just found the variations in the survey questions.

C

Tahamohsin · Answer

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

1=D

A. attributed measures of greater happiness to a rising trend in GNP
  Weimann, Knabe, and Schdéb don't believe Easterlin is incorrect because he attributed measures of greater happiness to a rising trend in GNP
  
B. included too many developing nations with low per capita GNP levels in his survey
  One word wrong. The author does talk about the inclusion of many countries with historically unstable governments and economies but doesn't talk about Developing nations.

C. used the results of his research to advocate for greater redistribution of wealth in more developed countries
  Easterlin doesn't use his data incorrectly but, actually, his data is incorrect

D. included citizens of too many countries that do not have settled political systems
  Yes, the author does talk about the inclusion of many countries with historically unstable governments and economies 
 
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens
  Word such as "overrepresented " and "literate citizen" make this choice wrong.

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

2=B
The economists mentioned the view the governments of developed nations should divert funds to social projects that have the potential to reduce inequality. 
 
A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.
  This doesn't support the economist assertion.

B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.
  If we insert this in the first para, this will bridge the gap between the premises and the conclusion.

C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
  Completly out of scope.

D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.
  This doesn't support the economist's assertion.

E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.
  Corrupt government" makes it out of scope.

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

3=C.... Though tough one though

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics.
  The passage never stated that Stevenson and Wolfer did the research for the purpose of undermining Easterlin's analysis of life satisfaction statistics.

B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.
  This choice is very close, but the word "analysis " makes the choice wrong. Stevenson and Wolfer's results invalidate Easterlin data, not his analysis.

C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.
  Yes, correct answer. they find his data to be inaccurate.

D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.
  Totally wrong, no such things were mention in the passage.

E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.
  Stevenson and Wolfer do not uncover a bias in Easterlin's research.

GargieMahajan · Answer

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP  (Incorrect) 
   acc to Easterlin, there exists no relationship between happiness and GNP  
B. included too many developing nations with low per capita GNP levels in his survey  (Incorrect)
 he included developed countries and specifics of GNP isn't clearly given.  
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries  (Incorrect)
 Though it can be inferred, but it wasn't what W, K and S believed.  
D. included citizens of too many countries that do not have settled political systems  (Correct) 
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens  (Incorrect)
 by surveying only literate citizens is wrong. it is not mentioned in the passage.  
IMO answer is  D

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.  (Incorrect) 
 comparision between 2 developed counteies is considered.  
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP .(Incorrect)
 there exists no correlation of happiness and GNP. 
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP. (Correct) 
  yes, 2 countries with a similar positive trend in GNP will have similar level of happiness 
D. A country that has experienced setbacks in its efforts to establish a democratically “elected  government reports increasing levels of happiness. (Incorrect)
 Cannot say, Out Of Scope.  
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP. (Incorrect)
 talk about developed country.

IMO answer choice is  C.

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics.  (Incorrect)
 it wasn't their sole purpose, rather there reasrch has been quoted to prove Easterlin analysis wrong. 
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.  (Incorrect)
 life statisfaction stataistics is out of context. 
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.  (Correct) 
 'which indicates that the exact wording of the questions in Easterlin's survey changed across the years; respondents who had the same overall satisfaction 
 received lower survey scores in later years due solely to differences in the questions.'
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years. (Incorrect)
 their research didn't comment about the measures of happiness. 
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.  (Incorrect) 
 Deaton reaseach did it 
IMH answer is  C .

RashmikaAnegama · Answer

1 Let us note down the points, of Weimann, Knabe, and Schdéb, which talk about Easterlin's methodology
 They criticized Easterlin's methodology, citing Deaton’s observations that the disproportionate number of wealthy countries, the inclusion of many countries with historically unstable governments and economies, and the limitation of survey respondents to the wealthy citizens of poorer countries distort Easterlin’s data.

D.  included citizens of too many countries that do not have settled political systems 
From the above point the answer is D
A.  attributed measures of greater happiness to a rising trend in GNP 
Worstall talks about the option A not Weimann, Knabe, and Schdéb. So, we can eliminate A
B.  included too many developing nations with low per capita GNP levels in his survey 
Weimann, Knabe, and Schdéb don't talk about low per capita GNP levels, which can be proved by 3rd para. So, we can eliminate B
C.  used the results of his research to advocate for greater redistribution of wealth in more developed countries 
No, can be proved from the above point.
E.  overrepresented the views of wealthy people in poorer nations by surveying only literate citizens 
No, can be proved from the above point.

2 D.  A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.

3 E.  Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.

So, IMO, D, D, E.

TarunKumar1234 · Answer

Summary:  Eastedin-->Rich (reduce), poor (increase)
But, happiness doesn't increase at same level (e.g. USA), So divert fund to social projects

Worstall- After basic needs surrounding matters, keep GNP, but rather than size, use direct and rate of GNP
Wei+K+S-> Sampling error, further Stevenson and Wolfer's- question changed and lower survey scores in later years.

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP -> Incorrect.
B. included too many developing nations with low per capita GNP levels in his survey -> Incorrect. Too many wealthy nations included.
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries-> Incorrect.
D. included citizens of too many countries that do not have settled political systems->  Correct 
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens -> Incorrect. "only literate citizens"

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.->  Correct.  I think, these two cases have similar social situation for people around.
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.-> No. Incorrect.
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP. -> Not related with GNP.
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness. ->No incorrect.
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP. -> No. Incorrect.

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics. -> No. "undertaking their research was to undermine". incorrect.
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics. ->Incorrect
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy. ->  Correct 
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years. -> Exactly opposite . Incorrect.
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries. -> No. They are talking about questions being changed and it's impact.

Deepakjhamb · Answer

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

answer is a) attributed measures of greater happiness to a rising trend in GNP

A. attributed measures of greater happiness to a rising trend in GNP :  yes infact that is the only thing that can be inferred about Easterlin as he noticed that as people's income increases, their happiness level does not commensurately increase , and indirectly it attributes happiness to whole GNP rather than GNP per person and that is what Weimann, Knabe, and Schdéb criticize Easterlin's methodology .Also all other options can be eliminated so its the answer 
 
B. included too many developing nations with low per capita GNP levels in his survey :  the third para says he disproportionate number of wealthy countries included by Easterlin - now this could be high or low in number so cannot be inferred . 
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries:  nowhere its mentioned that Easterlin advocated redistribution of wealth in more developed nations , it was other economists who did that as per passage 
D. included citizens of too many countries that do not have settled political systems : in para 3 it mentions -the inclusion of many countries with historically unstable governments , so that unstable political systems are of past and may be settled now,so ruled out

E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens :  passage does not say surveying only literate citizens which is not correct as per the passage

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?
 answer is c)A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.:  no comparison with war -torn country is mentioned in passage , so ruled out  
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP. 
:  this is reversal of facts in the passage as view of economists in first para is that of Easterlin who says that citizen's happiness does not commensurately increase with their income 
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP. :  this looks to be most supported as happiness level of nation is attributed to overall GNP and also that happiness level does not increase commensurately with GNP per capita , so they may be same . 
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.:  countries that experienced setbacks in elected government - their happiness level is out of scope of the passage  
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.:  corrupt government countries are out of scope for happiness correlation

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

answer is b)Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics: 
 stevenson and wolfer's reason for undertaking their research is out of scope of the passage  
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics:  as all other options can be eliminated 
and that Stevenson and Wolfer's study indicates that Easterlin's analysis that commensurate increase in happiness did not take place with increase in citizen's income was invalid as the questionnaire change in wording was responsible for lower satisfaction levels which were actually same  
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy :  data was not untrustworthy but his analysis was invalidated as the overall satisfaction level received lower survey scores due to differences in the questions. 
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.:  measure of happiness were constant across years is wrong interpretation as the study instead said that overall satisfaction level was same across the years  
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries : this was part of Deaton’s observations and not Stevenson and Wolfer study , so ruled out

Neha2404 · Answer

1-D
2-A
3-B

IMO-D

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP
INCORRECT:- Weimann, Knabe, and Schdéb's study indicates thatEarterin incorrectly used the results of his research to advocate for greater redistribution of wealth in more developed countries not attributed measures of greater happiness to a rising trend in GNP

B. included too many developing nations with low per capita GNP levels in his survey
INCORRECT: it is not mentioned in the passage

C. used the results of his research to advocate for greater redistribution of wealth in more developed countries
INCORRECT-Weimann, Knabe, and Schdéb's study indicates that Earterin incorrectly used the results of his research to advocate for greater redistribution of wealth in more developed countries

D. included citizens of too many countries that do not have settled political systems
CORRECT:-According to Weimann, Knabe, and Schdéb believe Eartlin incorrectly included of many countries with historically unstable governments and economies, and the limitation of survey respondents to the wealthy citizens of poorer countries distort Easterlin’s data.

E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens
INCORRECT :- In passage nothing is mentioned about the views of wealthy people in poorer nations

IMO-A

SUPPORTING LINE:-report that as income increases, their happiness level does not commensurately increase
2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.
CORRECT:-It says on the increase of GNP happiness not increase

B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.
INCORRECT:-It is 180 degree answer

C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
incorrect:-It says on the increase of GNP happiness not increase

D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.
Incorrect:-NO mentioned in passage about “elected government

E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.
incorrect:-Not anything is mentioned about GOVT report and correlate well with increases in per capita GNP.

IMO-B
SUPPORTING LINES:-
 the limitation of survey respondents to the wealthy citizens of poorer countries distort Easterlin’s data. These economists also point to Stevenson and Wolfer's research, which indicates that the exact wording of the questions in Easterlin's survey changed across the years; respondents who had the same overall satisfaction received lower survey scores in later years due solely to differences in the questions.

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics.-INCORRECT
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.:- CORRECT
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.:- INCORRECT
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.INCORRECT
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.INCORRECT

Pankaj0901 · Answer

IMO ANSWERS:
C C B

Summary:
P1: Easterlin's Paradox- Richer->Poor wealth distribution => Standard of Living increase
Developed nation/US: Income increase does not lead to happiness increase
GNP/person doesn't work, rather social projects to help poor can help in reducing inequality

P2: Worstall (disagrees Easterlin's paradox)
After basic needs fulfilled-> people around them; overall TREND of economy....is what matters

P3: W, K & S (criticize Eastelin's)
Referring to Deaton's: 1. Wealthy/developed nations considered 2. unstable govt historically, 3. survey from poor people
Stevenson's & Wolfer: Easterlin's received different questions - survey - same satisfaction level

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP
B. included too many developing nations with low per capita GNP levels in his survey
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries
D. included citizens of too many countries that do not have settled political systems
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens
 Correct is C, as mentioned in the first point of P3 summary above.

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.
 Correct Answer: C. As stated in summary for P1 above.

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics.
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.
 Correct answer B. As stated in P3, 
"These economists also point to Stevenson and Wolfer's research, which indicates that the exact wording of the questions in Easterlin's survey changed across the years;  respondents who had the same overall satisfaction received lower survey scores  in later years due solely to differences in the questions."

rocky620 · Answer

Para-1  - Economists view on Easterlins method of Wealth Distribution - Happiness can be achieved by reducing inequality instead of focusing on increasing per capita GNP
 Para-2  - Worstall's disagreement with economists - Happiness is proportional to GNP growth.
 Para-3  - Weimann, Knabe, Schobe critics of Easterlin method - Citing: Deatons Onservations + Stevenson & Wolfer's research

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

A. attributed measures of greater happiness to a rising trend in GNP......  This was Worstall's view. Eliminate . 
B. included too many developing nations with low per capita GNP levels in his survey......  Yes for including too many developing (wealthy) countries, but no for low per capita GNP. Eliminate  
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries....  Even though we can argue that Easterlin never advocated redistribution of wealth, when we look at other choice this one seems more appropriate. IMO i will keep it.  
D. included citizens of too many countries that do not have settled political systems......  " the inclusion of many countries with  historically unstable governments ". Historically unstable Governments does not means, they are still unstable. Eliminate  
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens......  "the limitation of survey respondents to the wealthy citizens of poorer countries". The survey was limited to such respondents, but were the results over represented? We cannot say for sure. Eliminate.

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

Economists view in the first para -  rather than pursuing improvements in gross national product (GNP) per person,  governments of developed nations  should divert funds to social projects that have the potential to reduce inequality .

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure......  Happiness levels of  wealthy nation + modestly growing economy  is similar to that of  war-torn country+less developed infrastructure . We can conclude that the govt of wealthy nation must have diverted the funds to social projects and that is why they have modest growth in economy, resulting in equality, and the war torn country is maintaining equality by focusing on happiness levels and not the infrastructure growth. Over all the comparison is apt. Keep It.  
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP......  It is opposite. Eliminate.  
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.....  If the per capita GNP is increasing (which in turn is improving economy), and so is the happiness levels, then this choice contradicts the view. But, If the per capita GNP is increasing (which in turn is improving economy), and the happiness levels are same/decreasing, then this choice supports the view. We do not know about the change in happiness levels. Eliminate.  
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.....  Set backs in its efforts to establish a democratically “elected government cant be taken as decrease in per capita GNP. Eliminate.  
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP......  It is opposite. Eliminate.

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?

Stevenson and Wolfer's research indicated that the question, in Easterlin's survey, have changed across years. But the individuals who still have the same satisfaction levels, received low points. (due to change in wording of the question)

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics......  This was not the main motive. Eliminate.  
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.  No Invalidation is proved. Eliminate  
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.......  Trustworthiness is not mentioned. Only methodology is criticized and that too by Weimann, Knabe, and Schob. Eliminate  
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.....  Yes, This matches the reasoning mentioned above. Keep It  
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.....  Their indication was towards the people who had the same satisfaction levels. They might be wealthy/poor. Eliminate.

IMO Options C, A, D

BIDJI23 · Answer

1. The author of the passage states that Weimann, Knabe, and Schdéb believe Easterlin incorrectly

I think the answer is here: the disproportionate number of wealthy countries, the inclusion of many countries with historically unstable governments and economies, and the limitation of survey respondents to the wealthy citizens of poorer countries distort Easterlin’s data"

A. attributed measures of greater happiness to a rising trend in GNP
 So no 
B. included too many developing nations with low per capita GNP levels in his survey
 No too many wealthy countries 
C. used the results of his research to advocate for greater redistribution of wealth in more developed countries
 I do not think so 
D. included citizens of too many countries that do not have settled political systems
 Too many? No many! 
E. overrepresented the views of wealthy people in poorer nations by surveying only literate citizens
 Yes as it is said at the end of the sentence above.

1-->E

2. Which of the following research results would most support the view of the economists mentioned in the first paragraph?

A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.
 Not sure that this is comparable. 
B. A wealthy nation with a growing economy reports levels of happiness that correlate well with increases in per capita GNP.
 No that's the contrary. Happiness and economic growth are not always linked. 
C. A wealthy nation with a growing economy reports a similar level of happiness as a neighboring country with a similar positive trend in per capita GNP.
 Maybe. It's close. I keep it if I can not find better. 
D. A country that has experienced setbacks in its efforts to establish a democratically “elected government reports increasing levels of happiness.
 I do not think that democracy is a key factor here. 
E. A developing country with a growing economy but a corrupt government reports levels of happiness that correlate well with increases in per capita GNP.
 Corruption is not a topic in the first paragraph.

2-->C

3. Which of the following statements about Stevenson and Wolfer's study can be inferred from information in the passage?
 Respondents who had the same overall satisfaction received lower survey scores in later years due solely to differences in the questions

A. Stevenson and Wolfer's reason for undertaking their research was to undermine Easterlin's analysis of life satisfaction statistics.
 This was not their goal. 
B. Stevenson and Wolfer's results invalidate Easterlin's analysis of life satisfaction statistics.
 It's more about the method of Easterlin we are dealing with, here. 
C. Stevenson and Wolfer found Easterlin’s data to be untrustworthy.
 I think this is a good answer. Can we trust East. surveys? Not at all...His data are biased 
D. Stevenson and Wolfer conclude that, even though the questions in Easterlin's survey had changed, measures of happiness were constant across the years.
 We do not know 
E. Stevenson and Wolfer uncovered a bias in Easterlin's research toward wealthier respondents in undeveloped countries.
 It's more about how are written the questions. So here again, I think it's not good.

3-->C

Sajjad1994 · Answer

This is a hard passage! The Official answers are DAC. Vie3nrose 2/3 is a good result for this passage. Everyone randomly missed one question or two, keeping in mind the difficulty level all those got 1 incorrect shouldn’t be worried about. Deepakjhamb Pankaj0901 hard luck

You all may noticed that when we don’t have the OA/OE and when we attempt the question in the test environment our mistakes float on and we come to know the real position of our GMAT preparation. Participating in this competition will hopefully strengthens your skills. Good Luck for the next questions, Points table will be updated soon. Thank you

Nipungupta9081 · Answer

Woah this was a hard one !!

Took me around 10 min to read but got all correct. So i guess we are good haha !!

Q1 -  D. included citizens of too many countries that do not have settled political systems

it's written in the last Paragraph - the inclusion of many countries with historically unstable governments and economies, and the limitation of survey respondents to the wealthy citizens of poorer countries distort Easterlin’s data.

Q2 -  A. A wealthy nation with a modestly growing economy reports a similar level of happiness as a war-torn country with less developed infrastructure.

If you're reading the Passage in Involved and Evolved manner you'll get this can't stress on that.

Q3. -  B. Stevenson and Wolfer's results  invalidate  Easterlin's analysis of life satisfaction statistics.
 C. Stevenson and Wolfer found Easterlin’s data to be  untrustworthy.

The only change in these 2 are Invalidate and Untrustworthy.

I think  invalidate  will be too Extreme so C.

VerbalBot · Answer

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Some economists cite the Easterlin paradox to justify redistribution

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Some economists cite the Easterlin paradox to justify redistribution

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