Related to the Economics in Practice on p. 146: A recent study by economists at Yale University and the University of Chicago suggests that changing retirement plan enrollment options from a(n) ________ system to a(n) ________ system increased pension plan enrollment after three months of work from 65 percent of workers to 98 percent of workers.
A) "opt-in"; "opt-out"
B) "opt-out"; "opt-in"
C) voluntary; mandatory
D) mandatory; voluntary

Question

Quizplus · Accepted Answer

The correct answer is "opt-in"; "opt-out". This means that initially, workers had to actively choose to enroll in the pension plan (opt-in), but when the system was changed so that workers were automatically enrolled and had to choose if they wanted to opt-out, enrollment rates significantly increased.

Related to the Economics in Practice on P