Juan and Berta were millionaires who lost half of 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?

Question

Quizplus · Accepted Answer

The adaptation-level phenomenon refers to the tendency for individuals to adapt to a certain level of stimulation or situation and perceive it as normal, thus leading to increases in one's baseline level of happiness. In this case, Juan and Berta may have adapted to their new financial situation and as a result, their baseline level of happiness may have remained relatively stable despite their loss of wealth.

Juan and Berta Were Millionaires Who Lost Half of Their