Final answer:
The concept of behavioral nudges in behavioral economics is based on the understanding that people do not always act rationally, and such nudges are designed to guide them towards better decision-making by leveraging their tendencies to avoid effortful and complex decision-making.
Step-by-step explanation:
The statement 'Behavioral nudges are based on the premise that humans prefer to do things slowly and effortfully' is false. Behavioral nudges are actually a concept in behavioral economics where it is understood that people often do not act with complete rationality and may not exhibit perfect self-control. Traditional economic theories often assume rational behavior, but behavioral economists recognize that humans can be prone to cognitive biases and irrationalities.
For instance, to combat issues like procrastination or decision paralysis, some companies automatically enroll employees in retirement savings plans, effectively nudging them towards better financial behavior. Employees are then saving from an early age without the need to make an active decision to enroll, and due to inertia, almost no one opts out.
This approach leverages the human tendency to go with the flow of pre-set options rather than exerting the effort to make changes, contrary to the idea humans prefer to do things in a more effortful and slower manner.