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:

Income Tax Expense

The cost incurred by businesses or individuals due to earnings, calculated according to government tax rates and laws.

Pretax Financial Income

The income of a company before taxes have been deducted, commonly used in the context of reporting and financial analysis.

Permanent Difference

A difference between the book income and taxable income that will not reverse over time.

Product Warranty Costs

Expenses incurred by a company to repair, replace, or reimburse for products that fail to meet specified warranties.