Directions: Study the following information carefully and answer the question given below.
Read the following passage carefully and answer the questions that follow:
As artificial intelligence and automated robotics increasingly encroach upon both routine cognitive and physical labour, the concept of Universal Basic Income (UBI) has migrated from speculative social philosophy into mainstream macroeconomic debate. Proponents contend that granting an unconditional, periodic cash transfer to all citizens—regardless of wealth, employment status, or means testing—provides an indispensable social safety net. By decoupling human survival from precarious employment, UBI is envisioned to eradicate extreme poverty, enhance workers' bargaining leverage against exploitative employers, and foster creative or entrepreneurial risk-taking without the fear of destitution.
However, fiscal conservatives and mainstream economists highlight severe macroeconomic vulnerabilities associated with unconditional transfers. In developing and emerging economies, financing a meaningful basic income would demand staggering fiscal outlays, potentially exceeding twenty to thirty percent of Gross Domestic Product (GDP). Such colossal expenditures could cannibalize essential public capital investments in healthcare, primary education, and physical infrastructure. Furthermore, critics warn that unconditional cash transfers could trigger systemic labour market disincentives, prompting low-wage informal workers to exit productivity-generating sectors. Others point out the inflationary peril: sudden cash injections across consumption-heavy demographics can trigger demand-pull inflation, rapidly eroding the purchasing power of the very transfer intended to alleviate poverty.
According to the passage, what is the primary societal argument advanced in favour of Universal Basic Income?
💡 Solution & Explanation:
Correct Answer: (B)
Core Concept: Reading Comprehension — Detail Retrieval
Step-by-Step Solution:
1. Paragraph 1 outlines the arguments of proponents: decoupling human survival from precarious employment, eradicating extreme poverty, and providing an indispensable safety net amid automation.
2. Option (B) synthesizes these core points accurately.
3. Options B, C, and D are unsupported.
Key Shortcut / Exam Tip: Scan paragraph 1 for the justifications offered by UBI proponents.