UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
Correct answer
Explanation
The correct answer is D, Universal Basic Income. UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
In India the idea was put at the centre of debate by the Economic Survey of 2016-17, prepared under Chief Economic Adviser Arvind Subramanian, which gave a full chapter to it. The Survey argued that many schemes leak money and miss the poor, and that a direct cash transfer into bank accounts, made possible by the JAM trinity of Jan Dhan accounts, Aadhaar and mobile phones, could reduce poverty more efficiently. Its three features are universality, unconditionality and agency, meaning people choose how to spend the money. The Survey also discussed the cost and the risk of reduced work effort.
A is wrong: "Union" is not part of the term. B is wrong: "Undefined" has no meaning in this context. C is wrong: the transfer is unconditional, but the U in UBI stands for universal, not unconditional.
Exam tip: UBI = universal, unconditional, agency; Economic Survey 2016-17; delivered through JAM (Jan Dhan, Aadhaar, Mobile).
Practice Questions
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- B.diminish
- C.remain constant
- D.first diminish and then improve
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- B.2 only
- C.Both 1 and 2
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