People usually know what is good for them, yet they make irrational personal and economic choices anyway. Why? The Nudge Theory says it is because people rely on their Automatic System, the source of gut reactions, and often have weak reliance on the Reflective System, the thinking system. If people learned to question their automatic responses before making decisions or choices, their lives would improve. For government policymakers, marketers, and even parents, nudges can help people make better choices. Nudge Theory combines psychological factors and conventional economics to develop behavioral economics to identify the government nudges, rather than enforcement actions, that help people make choices for personal and societal benefit.