The hedonic treadmill and spending

• A. A exercise routine that increases heart rate to improve mood
• B. The tendency for people to return to a relatively stable level of happiness despite major positive or negative life changes ✓
• C. A financial strategy for spreading purchases evenly over time
• D. A psychological disorder characterized by constant dissatisfaction with possessions

Why: The hedonic treadmill describes how people adapt to gains and losses, returning to a baseline level of happiness over time, so that pursuing new pleasures leads to ongoing striving rather than lasting satisfaction.

• A. Confirmation bias
• B. Hedonic adaptation ✓
• C. The sunk cost fallacy
• D. Social loafing

Why: Hedonic adaptation is the process by which emotional responses to positive or negative stimuli fade as people become accustomed to them, which is the mechanism driving the hedonic treadmill.

• A. Gadgets always break down within a month
• B. People quickly adapt to the new item, so it becomes part of the normal baseline and its novelty-based joy fades ✓
• C. Retailers deliberately hide the item's benefits after purchase
• D. Happiness is impossible to achieve through material goods under any circumstances

Why: Because people adapt to new possessions, the initial boost in satisfaction diminishes as the item becomes ordinary, which is why spending on goods often produces only short-lived happiness.

• A. A permanent increase in overall life satisfaction
• B. A growing need for more or better purchases to achieve the same level of happiness ✓
• C. Complete elimination of all desires
• D. Improved long-term savings without any change in behavior

Why: As people adapt to each purchase, they require progressively larger or more frequent purchases to recapture the original feeling of pleasure, creating a cycle of escalating spending.

• A. Buying the most expensive items available in every category
• B. Spending on experiences, such as travel or shared activities, rather than only on material goods ✓
• C. Purchasing items only on impulse without any planning
• D. Avoiding all forms of spending entirely

Why: Studies suggest experiences tend to produce more lasting happiness than material possessions, partly because they are less subject to comparison and adaptation, and because they often involve anticipation, memories, and social connection.

• A. A exercise routine that burns calories while shopping
• B. The tendency for people to return to a stable baseline level of happiness after positive or negative life changes ✓
• C. A financial strategy for spreading purchases over time
• D. A psychological disorder linked to compulsive buying

Why: The hedonic treadmill describes how people adapt to improvements in their circumstances, so their happiness drifts back toward a baseline despite the change.

• A. The product usually breaks within a few weeks
• B. People quickly adapt to the new item, and it becomes part of their normal everyday experience ✓
• C. Retailers secretly raise prices after the sale
• D. Memory of the purchase is erased by the brain

Why: Through habituation, the novelty of a purchase wears off as it becomes familiar, so it no longer produces the same emotional boost.

• A. Habituation ✓
• B. Amplification
• C. Conditioning
• D. Projection

Why: Habituation is the decrease in response to a repeated or constant stimulus, which explains why new possessions feel less exciting with continued exposure.

• A. Expensive luxury items that signal status
• B. Impulse buys made when feeling stressed
• C. Experiences such as travel or events ✓
• D. Items bought on credit to avoid paying upfront

Why: Studies by researchers like Thomas Gilovich suggest experiences tend to bring longer-lasting happiness because they are harder to compare, less subject to adaptation, and more tied to memories and social connection.

• A. Buying the same item repeatedly to build a collection
• B. Pausing before buying and focusing on how the item will add value to your life over time ✓
• C. Purchasing as many items as possible during sales
• D. Avoiding all spending to prevent any adaptation

Why: Deliberately pausing and considering long-term value helps counter the rapid fading of excitement and encourages purchases that offer more meaningful, sustained benefit.

• A. People's happiness permanently increases with every purchase they make.
• B. People tend to return to a relatively stable baseline level of happiness despite major positive or negative life changes.
• C. Happiness depends almost entirely on income level, regardless of personal habits.
• D. Negative experiences have a lasting effect on happiness, while positive ones fade quickly within days.

• A. The interest rate on savings accounts gradually increases over time.
• B. Things that once felt like luxuries become expected necessities, so people need more spending to feel the same satisfaction.
• C. A person's income rises automatically each year due to inflation.
• D. Happiness levels rise steadily as people age and gain life experience.

• A. The car's engine deteriorates quickly after the first few months.
• B. The car becomes a normal part of daily life, and the initial excitement adapts away as the person's expectations adjust.
• C. Most cars lose their value so quickly that owners feel financially stressed.
• D. Other people stop admiring the car once it is no longer new to them.

• A. Upgrading to the most expensive version of every product to maintain satisfaction.
• B. Spending money on experiences and on others, which tends to produce longer-lasting satisfaction than material possessions.
• C. Avoiding all spending so that the baseline never rises.
• D. Buying items on credit so that the pleasure of the purchase is delayed.

• A. The friend is correct, because housing is the most important source of lasting happiness.
• B. The friend may find the satisfaction fades as the bigger house becomes the new normal, and new desires may emerge.
• C. The friend will be even happier than expected because the larger home will continue to feel new.
• D. The friend should wait until retirement to buy a bigger house, since happiness only comes with age.

• A. A exercise routine that burns calories faster when people feel happy
• B. The tendency for people to return to a baseline level of happiness after positive or negative life changes ✓
• C. A financial model that predicts how spending increases with income
• D. A measure of how often people feel pleasure during leisure activities

Why: The hedonic treadmill describes how people adapt to new circumstances, such as a raise or a new purchase, and gradually return to their prior baseline level of happiness.

• A. Gadgets always break within a few weeks of purchase
• B. People quickly adapt to the new item and begin taking it for granted ✓
• C. Retailers hide the true cost of the product from buyers
• D. Happiness can only come from experiences, never from possessions

Why: Through hedonic adaptation, the novelty of a purchase wears off as it becomes familiar, so the initial boost in satisfaction fades over time.

• A. Comparing ourselves to others makes us spend less money overall
• B. People judge their satisfaction relative to peers, so rising standards keep moving the goalposts ✓
• C. Social comparison has no effect on spending or satisfaction
• D. Comparison only matters for people with very low incomes

Why: When friends or neighbors upgrade their possessions, our reference point shifts upward, making our own purchases feel less adequate even if our situation improved.

• A. Upgrading possessions as often as possible to stay ahead of adaptation
• B. Spending more on experiences and gratitude rather than constantly chasing new possessions ✓
• C. Avoiding all forms of leisure spending to maximize savings
• D. Comparing your lifestyle carefully with that of wealthier neighbors

Why: Research suggests experiences are less subject to comparison and adaptation than material goods, and cultivating gratitude helps people appreciate what they already have.

• A. A savings plan that matches the returns of a neighborhood index
• B. The habit of spending to match the consumption levels of one's social peers ✓
• C. A legal requirement for neighbors to share household expenses
• D. A psychological technique for improving memory of past purchases

Why: The phrase describes spending driven by social comparison, where people feel pressure to match the visible purchases of those around them.

• A. The tendency for people to exercise more when they buy fitness equipment
• B. The tendency for people to quickly return to a stable baseline of happiness after gaining something new, so that purchases provide diminishing emotional returns ✓
• C. The practice of spending money only on experiences rather than physical objects
• D. The habit of setting higher income goals after each salary increase

Why: The hedonic treadmill describes how people adapt to positive changes, such as new possessions or higher income, and gradually return to their prior level of happiness, which means each new purchase brings less lasting satisfaction than expected.

• A. Material goods, because they are tangible and can be displayed
• B. Experiences, because they are less subject to comparison and are more often remembered positively ✓
• C. Neither; both produce identical levels of happiness
• D. Material goods, because they are cheaper on average

Why: Studies by Van Boven and Gilovich and others found that experiences tend to bring more lasting happiness than material goods, partly because people compare possessions to others' items more easily and adapt faster to objects.

• A. Experiences are always more expensive, which makes people value them more
• B. Experiences are more social and tend to become part of our identity and stories, and they are harder to compare directly with others ✓
• C. Experiences last longer in physical form than material goods
• D. Experiences require no emotional investment from the person

Why: Experiences are often shared, become part of personal narratives, and are harder to rank or compare objectively, so they tend to keep their meaning over time instead of becoming routine like possessions do.

• A. A new television for the living room
• B. A designer handbag
• C. A trip to a music festival with friends ✓
• D. A new car with upgraded features

Why: A trip to a music festival is an experience involving time, activity, and often social connection, whereas a television, handbag, or car are material possessions.

• A. Avoid all spending to prevent adaptation
• B. Prioritize spending on shared experiences and activities over accumulating new possessions ✓
• C. Replace your possessions every few months to keep them feeling new
• D. Spend only on items that other people cannot see

Why: Shifting spending toward shared experiences helps counter hedonic adaptation, since experiences tend to retain their value and create memories, while constantly buying possessions yields quickly fading satisfaction.

• A. The tendency for people to seek out physical exercise to boost mood
• B. The tendency for people to return to a baseline level of happiness after positive or negative life changes ✓
• C. The tendency for spending on luxury goods to increase over time
• D. The tendency for income to rise faster than living costs

Why: The hedonic treadmill refers to how people adapt to improvements (like a raise or a new car) and return to a relatively stable baseline of happiness, so the boost from new purchases tends to fade.

• A. A luxury watch that signals status
• B. Upgrading to the newest smartphone model each year
• C. Experiences such as travel or a shared meal with friends ✓
• D. A larger television in the living room

Why: Studies by researchers such as Thomas Gilovich suggest experiences tend to provide lasting satisfaction because they are harder to compare, become part of our identity and memories, and are more often shared with others.

• A. Material goods are always more expensive than experiences
• B. Material goods are easier to compare with others, and we adapt quickly to their features ✓
• C. Experiences always involve negative emotions that offset enjoyment
• D. Material goods wear out before experiences do

Why: Material possessions are easy to compare with what others own and tend to become familiar quickly, so people adapt to them. Experiences are more unique and are often remembered and anticipated, which slows adaptation.

• A. Buying the same item repeatedly to maintain familiarity
• B. Spending on variety and novelty rather than a single repeated purchase ✓
• C. Avoiding all spending to prevent adaptation
• D. Only buying items that cost the most money

Why: Varied and novel experiences tend to resist adaptation better than repeated exposure to the same thing, which is why diversifying how you spend can help sustain positive feelings.

• A. Spending mainly to keep up with peers' possessions
• B. Spending on time-saving services that free up time for meaningful activities ✓
• C. Spending all disposable income as soon as it arrives
• D. Spending on items you expect to feel guilty about later

Why: Research by Whillans and colleagues found that spending money to buy time, such as paying for cleaning or delivery services, is associated with greater life satisfaction, because it reduces time pressure and creates room for valued activities.

• A. The tendency for people to permanently increase their happiness after each major purchase
• B. The tendency for people to return to a baseline level of happiness despite positive or negative life changes ✓
• C. The physical exercise routine people use to burn off impulse spending
• D. The cycle of earning income and immediately spending it on necessities

Why: The hedonic treadmill refers to how people quickly adapt to new circumstances, such as purchases or raises, and return to their previous baseline of happiness, which can drive a cycle of continual spending to chase that lost boost.

• A. Because the item permanently changes their personality
• B. Because the brain releases dopamine in anticipation of rewards, which fades as the item becomes familiar ✓
• C. Because retailers legally guarantee lasting satisfaction
• D. Because new items always increase income

Why: Dopamine is tied to anticipating and seeking rewards. Once the novelty wears off and the purchase becomes ordinary, the pleasant feeling diminishes, which is why the boost is typically short-lived.

• A. Increasing credit card limits to afford more purchases
• B. Pausing before purchases to ask whether the item will still bring value after a few weeks ✓
• C. Buying the most expensive version of every item to maximize satisfaction
• D. Avoiding all experiences that cost money

Why: A short pause before buying helps separate genuine need or lasting value from the temporary excitement of novelty, reducing impulse purchases that the hedonic treadmill encourages.

• A. People adapt by becoming less sensitive to the things that previously made them happy, requiring more to feel the same ✓
• B. People adapt by spending less money over time without effort
• C. People adapt by completely eliminating negative emotions
• D. People adapt by saving every dollar they earn

Why: Adaptation means that repeated exposure to a pleasure reduces its emotional impact, so people often seek bigger or newer rewards to recapture the original feeling, fueling continued spending.

• A. Measuring success mainly by how many new possessions you own
• B. Investing more in experiences, relationships, and activities that build lasting satisfaction ✓
• C. Comparing your belongings with those of your neighbors each month
• D. Upgrading your phone every time a new model is released

Why: Research suggests experiences and relationships tend to provide more durable happiness than material goods, and they are less susceptible to rapid adaptation, helping people step off the spending cycle.