Which statement best describes the author’s likely purpose for proposing questions in paragraph 1

A. to show that money is the most important factor in happiness

B. to prompt readers to consider how money affects their happiness

C. to prompt readers to imagine what they would do with extra cash

D. to show that experts are unsure how money affects one’s happiness



People often have conflicting ideas about whether or not money can buy happiness. Some believe that the

lifestyle that money can offer is equivalent to happiness, while others fear that money can lead to

greediness that can never be satisfied. In this study, psychologist Daniel Kahneman and economist Angus

Deaton seek the answer to this question. As you read, take notes on the different definitions of happiness

that exist and how they are affected by money.

How much money do you think it would take to

make you happy? Would an extra $10,000 a year

do it or would it take a $100,000 salary bump to

improve your mood?

A new study from Princeton economist Angus

Deaton and psychologist Daniel Kahneman

suggests that number depends on how you

define happiness. The authors draw a distinction1

between emotional well-being, “the quality of a

person’s everyday experience such as joy,

fascination, anxiety, sadness, anger, and

affection,” and life evaluation, “a person’s

thoughts about his or her life (on a longer time

scale).”

Their study of data from the Gallup-Healthways Well-Being Index found that while “life evaluations rise

steadily with income,” emotional well-being drops off at about $75,000 a year.

Beyond $75,000, money is important for life evaluation but does nothing for happiness, enjoyment,

sadness, or stress. Both factors are important; it is good to have high emotional well-being, but it is

also good to think your life is going well.

According to the most recent census2

data, the median U.S. household income was $52,000 in 2008,

with about a third of households making above $75,000.