Which of the following is a characteristic of the 'Universal Basic Services' proposal? MCQ with Answer and Explanation

Which of the following is a characteristic of the 'Universal Basic Services' proposal?
A. Only targeted residual welfare
B. Public provision of a range of essential services free at the point of use as a complement or alternative to basic income
C. Only cash transfers without any public services
D. Only private provision of all services
Answer: Option B
Solution (By JKSSB Mock Tests)
Universal basic services advocates the collective provision of a set of essential services—such as health, education, housing, transport and information—available to all citizens free or at low cost.

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Practice More Economy Set 1 Questions

Question #1
The term 'Disguised Unemployment' implies that:
A. Workers are employed in high-productivity jobs
B. Workers are unemployed and actively seeking jobs
C. More people are engaged in a task than required, with marginal productivity close to zero
D. Unemployment is due to seasonal factors only

Correct Answer: Option C


Explanation:
Disguised unemployment exists when the removal of some workers does not reduce total output, typically found in agriculture in developing countries.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Life-Cycle' and 'Permanent-Income' hypotheses taken together?
A. Both emphasise that consumption depends on long-run resource constraints rather than current income alone
B. Both assume infinite horizons only
C. Both claim that only current income matters
D. Both ignore the role of wealth

Correct Answer: Option A


Explanation:
Both the life-cycle hypothesis and the permanent-income hypothesis assert that forward-looking consumers base consumption on expected lifetime or permanent resources rather than on current income alone.

This question belongs to: Economy GK Economy Set 1
Question #3
The reverse repo in monetary policy means the RBI:
A. sells securities to banks with an agreement to repurchase them later, absorbing liquidity
B. buys government bonds outright
C. lends funds to banks against securities
D. reduces CRR

Correct Answer: Option A


Explanation:
In reverse repo, the RBI sells securities to banks with an agreement to repurchase later, absorbing liquidity.

This question belongs to: Economy GK Economy Set 1