U.S.employees who formerly wanted to contribute to a retirement plan typically had to choose to lower their take-home pay.Now companies are being encouraged to enroll their employees in the plan automatically while allowing them to choose to opt out of the plan.Under the new opt-out system,enrollments soared.This best illustrates the impact of:

Question

Quizplus · Accepted Answer

This scenario illustrates the impact of framing, which refers to the way in which information is presented or framed to influence our perceptions and decisions. By automatically enrolling employees in the retirement plan and allowing them to opt out, the decision is framed as the default option, making it more likely that people will choose to participate. This is because people tend to be influenced by the way that options are presented to them and are more likely to choose options perceived as the default or "normal" choice.

USEmployees Who Formerly Wanted to Contribute to a Retirement Plan