Juan and Berta were millionaires who lost half their life savings due to a bad investment decision.Which of the following best explains why after three years Juan and Berta seem to have suffered no permanent loss of happiness?
A) relative deprivation
B) the concept of flow
C) the catharsis hypothesis
D) the adaptation-level phenomenon

Question

Quizplus · Accepted Answer

The adaptation-level phenomenon suggests that people have a tendency to adapt to new situations, including changes in their financial situation, and return to their previous level of happiness over time. Therefore, even though Juan and Berta lost half their life savings, they have likely adapted to their new financial situation and returned to their previous level of happiness after three years.

Juan and Berta Were Millionaires Who Lost Half Their Life