Whether workers must "opt into" or "opt out of" a retirement savings plan ______ make a difference if workers are rational optimizers and ______ make a difference if workers' behavior exhibits inertia.
A) would; would
B) would not; would not
C) would; would not
D) would not; would

Question

Quizplus · Accepted Answer

If workers are rational optimizers, the choice between "opting in" or "opting out" of a retirement savings plan should not affect their decision, as they would make the optimal choice regardless. However, if workers exhibit inertia, the default option (whether it is to be enrolled automatically or not) could significantly impact their participation, as they might not take action to change their status.

Whether Workers Must "Opt Into" or "Opt Out Of" a Retirement