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Passage: 'Studies show that consumer behaviour is heavily influenced by which option is presented as the default. People are far more likely to enrol in employer pension plans if enrolment is automatic and they must opt OUT than if they must actively opt IN.' The BEST inference is
APeople always read the fine print
BPensions are unimportant
CPeople do not care about pensions
DDefault choices have powerful effects on actual behaviour, suggesting policy design (e.g., for organ donation, savings) can use opt-out defaults to nudge outcomes
Answer & Solution
Correct answer: D. Default choices have powerful effects on actual behaviour, suggesting policy design (e.g., for organ donation, savings) can use opt-out defaults to nudge outcomes
The passage's behavioural insight generalises to design problems where defaults can be chosen. The inference applies the insight to policy design without overreaching.
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