A. Nudging is a concept from behavioural economics and psychology that involves influencing people''s choices and behaviours in a predictable way, without forbidding any options or significantly changing their economic incentives. A "nudge" is a subtle intervention that makes it more likely for an individual to make a particular choice. The philosophy behind it, known as libertarian paternalism, is to steer people towards decisions that are in their own self-interest, while still preserving their freedom of choice.
B. Nudges work by taking advantage of our cognitive biases—the mental shortcuts and patterns of thinking that can lead to irrational decisions. For example, the "default effect" is our tendency to stick with a pre-set option. A classic nudge is to make organ donation the default option on a driver''s license application, requiring people to actively opt out rather than opt in. This simple change has been shown to dramatically increase organ donation rates.
C. Other examples of nudges are common in everyday life. Placing healthy food options at eye level in a cafeteria is a nudge towards better eating habits. Sending people a letter telling them that most of their neighbours pay their taxes on time is a social norm nudge that increases tax compliance. These interventions are typically low-cost and easy to implement, but they can have a surprisingly large impact on behaviour.
D. The use of nudging has become popular with governments and businesses, who use it to encourage a wide range of desirable behaviours, from saving for retirement to conserving energy. However, the concept is not without its critics. There are ethical concerns about the potential for manipulation and the lack of transparency in how people''s choices are being influenced. The debate highlights the fine line between helpful guidance and paternalistic overreach in shaping public behaviour.
IELTS Practice Tests Practice Test / Part 1 #186
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