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Public policy expert Fiona Ricci argues that 'nudges'—small changes in policy design that encourage certain behaviors without mandates—are effective but can be ethically problematic. Ricci points out that while enrolling employees in retirement plans by default significantly increases savings, it can also be seen as a form of paternalism that bypasses conscious deliberation. She suggests that the transparency of a nudge is critical to its legitimacy in a democratic society.
Which choice best states the main idea of the text?
- Ricci contends that while nudges can improve social outcomes, their lack of transparency may raise concerns about democratic legitimacy.
- Mandatory retirement plans are the most effective way to ensure that all employees save a sufficient amount of money for their future.
- Policy nudges are a purely effective tool for increasing employee savings without creating any negative consequences.
- Default enrollment in retirement plans is an ethically problematic policy that should be abolished in all democratic societies.
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