MAT Exam 2024 Paper

Question Numbers: 1-5SECTION-A : English LanguageDIRECTIONS (Qs. 1-5): Read the following passage carefully and answer the questions that follow.The concept of a universal basic income (UBI) has gained traction across economic and political circles in recent years, particularly as automation and artificial intelligence continue to disrupt labour markets globally. UBI proposes a periodic, unconditional cash transfer to all citizens, regardless of income or employment status, with the aim of ensuring a basic standard of living. Proponents argue that UBI addresses income inequality, reduces poverty, and provides individuals the freedom to pursue education, care-giving, entrepreneurship, or part-time work without fear of financial insecurity. Trials in Finland, Kenya, and parts of the U.S. have demonstrated mixed but largely positive results, such as improved mental well-being, slight increases in employment, and better financial planning. Despite its appeal, UBI is highly polarizing. Critics argue that unconditional transfers may dis-incentivize work, strain public finances, and lead to inflationary pressures. Others believe targeted welfare schemes are more efficient, focusing resources on those who need them most. Moreover, implementation in large, diverse economies like India or Brazil poses administrative challenges and risks of corruption or misidentification.Technological displacement of jobs adds urgency to the debate. As machines outperform humans in repetitive and even cognitive tasks, there are concerns about a jobless future. McKinsey reports estimate that by 2030, up to 800 million jobs globally could be displaced. In such a world, traditional employment-based safety nets may become obsolete. UBI offers an alternative foundation-one that decouples survival from employment.However, designing a UBI scheme involves hard trade-offs. Should the payment replace or supplement existing social programs? How would it be funded-through higher taxes, carbon dividends, or reallocating current subsidies? Pilot programs have varied in approach. For instance, Alaska's Permanent Fund Dividend distributes resource revenue annually to all residents, while some Silicon Valley experiments are privately funded by tech entrepreneurs curious about future economies.In India, the Economic Survey of 2016-17 floated the idea of a quasi-UBI or 'Universal Basic Services'-providing free healthcare, education, and transport instead of cash. This reflects concerns about cash misuse and inflation. Moreover, with a large informal sector, direct cash transfers may not yield productivity gains if basic infrastructure and services are absent. Behavioural responses also matter. In some pilots, people saved the money or invested it in livestock or education, while in others, short-term consumption took precedence.Critics also raise moral concerns-does society owe a living to those who choose not to work? On the other hand, is it fair to judge labour purely in monetary terms, ignoring unpaid caregiving or community work? UBI rekindles such philosophical debates. It also calls for a redefinition of work, productivity, and dignity in a post-industrial age. Economists remain divided. Nobel laureates like Abhijit Banerjee support small-scale, evidence-based implementation, while others like DaronAcemoglu warn against its unintended consequences. Political will, cultural values, fiscal space, and institutional capacity all play critical roles. Ultimately, UBI may not be a silver bullet, but it compels us to rethink the future of welfare in a rapidly changing world.