In the context of behavioural economics, 'Default Effects' demonstrate that:
A. Only active choices matter
B. People always opt out of defaults
C. Defaults have no effect on behaviour
D. The option that is pre-selected for individuals has a disproportionately large influence on choices
Answer: Option D
Solution (By JKSSB Mock Tests)
Default effects show that the pre-set option exerts a strong influence on behaviour; many people stick with the default even when opting out is easy, making defaults a powerful policy tool.
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