Juan and Berta were millionaires who lost half their life savings because of 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 suggests that people adapt to a given level of happiness and after some time, return to their baseline level of happiness. Thus, even though Juan and Berta suffered a significant loss in wealth, they may have adapted to their new financial situation and regained their baseline level of happiness.

Juan and Berta Were Millionaires Who Lost Half Their Life