Do happiness increase with increase in Knowledge?

No.. i dont think that happiness and knowledge are related. I do believe though that knowledge can make our lives far much easier which yea can get a bit of happiness therefore buts its not the source of happiness in our life. So many people have no knowledge and NOTHING and they are soo happy. I dont see the direct relation.

I do not believe that knowledge necessarily leads to happiness. As a child, I was taught that 'where there is no sense, there is no feeling' and I agree with this. I think the more we learn, especially about current affairs, and all the horrible things that go on in the world, it is easy to allow it all to make us unhappy. Also, as you said, knowledge can make us selfish - it can make us greedy and power hungry. I think that those who have less knowledge would be more content with what they have, and appreciate the simpler things in life, like good health and the love of others. It is unfortunate these days that our awareness of the world around us can lead us to dissatisfaction in our own lives.