[2026] PTE Academic Reading - Re-order paragraphs

Traditional economic theories assume that individuals always act as rational agents when making financial decisions.

However, research in behavioral economics suggests that human choices are often influenced by cognitive biases and social factors.

To address these irrational patterns, policymakers have developed the concept of 'nudging' to subtly guide consumer behavior.

One common example of this approach is the automatic enrollment of employees into retirement savings plans unless they choose to opt out.

By designing choices that account for human psychology, governments can significantly improve public welfare without restricting individual freedom.