Default choices, restricted choice and mandated choice
Governments can shape decisions by setting what happens automatically (default choice), limiting the available options (restricted choice), or requiring people to actively make a choice (mandated choice).
Real World
The UK's auto-enrolment pension scheme (2012) is a default choice: workers are automatically enrolled unless they opt out, dramatically raising pension saving rates among low-income workers.
Exam Focus
For 'evaluate' questions, contrast all three tools on effectiveness and freedom of choice to access top-band marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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