Benjamin Is Studying to Be an Accountant and Wants to Go

question 79

Multiple Choice

Benjamin is studying to be an accountant and wants to go to law school because tax lawyers make loads of money.He thinks that lots of money and an expensive house and car will make him happy.Based on what the authors of your text report on affective forecasting, how good is he likely to be at predicting what will make him happy in the future?

• A) very accurate most of the time
• B) moderately accurate most of the time
• C) not very accurate much of the time
• D) only accurate when the stakes are high

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Definitions:

Variable Expenses

Expenses that vary directly with the amount of output or activity level.

Fixed Expenses

Costs that do not change in total with changes in the volume of activity, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.

Fixed Expenses

Fixed expenses are costs that do not change in the short term regardless of the level of production or sales, such as rent, salaries, and insurance premiums.