Matt Has Had a Wonderful Semester at College

question 488

Multiple Choice

Matt has had a wonderful semester at college. He has made A's or B's on most of his tests and assignments. He enjoys his part-time job and recently got a raise, and he has a steady girlfriend, whom he enjoys spending time with and who is also very supportive. However, Matt's mother called this morning to tell him that his grandfather, to whom he is very close, is very ill. According to the research, Matt's happiness or subjective well-being would be

• A)low due to the overwhelmingly negative emotion Matt is feeling regarding his grandfather's illness.
• B)neutral, since the intense negative emotion generated by his grandfather's illness cancels out the positive emotions generated by Matt's everyday college experiences.
• C)high because Matt is experiencing frequent positive emotions and relatively few negative emotions.
• D)unpredictable, since Matt is young, and his emotions tend to fluctuate daily.

---

Definitions:

Break-even Point

The juncture where the overall expenses match the total income, leading to neither a net profit nor a loss in business operations.

Base Case Level

A standard or initial set of conditions used as a reference point for financial or operational planning and analysis.

Financial Break-even

The juncture where total income matches total expenditures and costs, leading to neither a profit nor a loss.

Internal Rate Of Return

A measure of an investment's rate of return, calculated by finding the interest rate that makes the present value of cash inflows equal to the present value of cash outflows.