Chapter 38 — Exercises

A1. "Money can't buy happiness." Apply the Easterlin paradox. Is this true? Partly true? What does the evidence say? A2. Name three things markets do well and three they do poorly. A3. Apply Sen's capability approach to evaluate two countries: Country A (GDP $50K, limited political freedom) vs. Country B (GDP $30K, strong democracy and healthcare). A4. "The economic way of thinking is a lens, not a truth" (Chapter 1). After 38 chapters, do you agree? Has the lens been useful? Where has it been limiting? A5. Identify one decision in your own life where economic thinking is the right tool. Identify another where it isn't. A6. "GDP growth is the most important policy goal." Evaluate using this chapter's framework. A7. Read Robert Kennedy's 1968 speech on what GDP doesn't measure. Do you agree with Kennedy? A8. What would a "good life" index include that GDP doesn't? Design one.

Selected answers in appendices/answers-to-selected.md.