Text 1: Economist Dr. Emily Stone defends welfare measurement. "GDP per capita indicates living standards," Stone writes. "Rising income enables consumption that improves well-being. Economic growth is good."
Text 2: Happiness researcher Dr. Robert Park questions the income-happiness link. "Beyond a threshold, income shows little correlation with life satisfaction," Park reports. "Adaptation and social comparison erode gains. Growth doesn't guarantee well-being."
What phenomenon does Park's research identify that limits Stone's growth-welfare connection?
That income cannot be measured
That adaptation and social comparison reduce the well-being impact of income gains
That consumption never occurs
That economic growth is impossible
Correct Answer: B
Choice B is the correct answer. Stone assumes income → consumption → well-being. Park identifies "adaptation and social comparison" that erode gains. Income rises but happiness doesn't proportionally follow.
- Evidence: Park: adaptation and comparison "erode gains."
- Reasoning: Psychological mechanisms limit income's well-being impact.
- Conclusion: These phenomena weaken growth's welfare connection.
Choice A is incorrect because Park studies income effects. Choice C is incorrect because Park discusses consumption impacts. Choice D is incorrect because Park accepts but questions growth's effects.