In the context of behavioural economics, 'Default Effects' demonstrate that:
A. People always opt out of defaults
B. The option that is pre-selected for individuals has a disproportionately large influence on choices
C. Defaults have no effect on behaviour
D. Only active choices matter
Answer: Option B
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.
No comments yet. Be the first to start the discussion!