How would universal basic income affect consumer optimum?
Universal basic income is a scheme to provide a specific sum of money to all the citizens of a country or territory regardless of their employment status. It is a kind of government expenditure. Government expenditure of a country is the amount spends by the government on the infrastructure and schemes or policies to improve the welfare of its citizens.
When an individual received a specific amount of money in the form of universal basic income, his/her income rises. Since people have additional money in their hands, they can use this income in raising their living standards by getting enrolled in better educational institutions and start any diploma or professional courses that can help in getting a better job in the future. By this optimality can be achieved in the future.
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