On the Average, People with Great Wealth Rate Themselves as Only

question 17

Multiple Choice

On the average, people with great wealth rate themselves as only slightly happier than people with much less wealth. One reason why these results are difficult to interpret is that

• A) wealth is correlated with advanced age, and age is positively correlated with happiness.
• B) so far, all the surveys have sampled only small numbers of people.
• C) the rating scales may mean different things to different people.
• D) longitudinal studies show that gaining wealth has little effect on happiness at first, but a bigger effect later on.

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Definitions:

Variable Costs

Costs that change in relation to the level of goods or services produced, such as materials and labor, in contrast to fixed costs.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials and labor.

Fixed Costs

Expenses that remain constant regardless of the amount of production or output, like lease payments or wages.