Many People Think, Inaccurately, That They Will Never Be Happy

question 106

Multiple Choice

Many people think, inaccurately, that they will never be happy again after the death of a loved one, or the end of a romantic relationship. Which of the following terms describes this tendency?

• A) hedonic treadmill
• B) positive psychology
• C) set point
• D) durability bias

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Definitions:

Short-Duration

Describes investments or financial instruments that have a short time until maturity, typically less than one year.

Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment or project.

Cash Inflows

Money or other forms of financial assets that enter a company, typically from sales, investments, financing, and other business activities.

Depreciation Value

The reduction in value of an asset over time due to wear and tear or obsolescence.