Which of the following is an advantage of nudge theory?

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Prepare for the T-Level Business Management and Administration Test. Utilize flashcards and multiple-choice questions with explanations to enhance your readiness. Excel in your exam!

Nudge theory is designed to influence behavior in a way that encourages positive change while minimizing resistance. This approach leverages subtle cues and design choices in the environment to guide decisions without the need for coercion or direct mandates. By fostering an environment where individuals can make better choices effortlessly, nudge theory promotes behavioral change in a more organic manner.

While other options may suggest various characteristics, they do not capture the essence of why nudge theory is effective. For example, requiring significant financial investment or mandating compliance would create barriers to behavior change and generate resistance. Similarly, while simplifying complex choices can be beneficial, it is not a primary advantage of nudge theory itself; the focus is more on influencing decisions through gentle prompts rather than outright simplification. Therefore, the ability to encourage change without resistance stands out as a significant advantage of nudge theory, making it appealing in various applications, from public policy to marketing strategies.

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