34. With reference to the above passage, the following assumptions have been made: I. Path-dependent green investments will eventually most likely benefit growth as well as public finances in a country like India. II. If other green technologies follow the same pattern as that of solar energy, there will most likely be an easy green transition. Which of the above assumptions is/are valid?

1. A. I only
2. B. II only
3. C. Both I and II
4. D. Neither I nor II

Answer: C

Explanation

Assumption I is valid: The passage emphasizes that “moving early and gradually gives economies more time to adjust, allowing them to reap the benefits of path-dependent green investment without much disruption.” It also mentions “economies of scale” and the “collapse in the price of solar energy.” These benefits, including cost reduction and smoother transitions, would naturally contribute to economic growth and potentially improve public finances in any economy, including India. The passage’s general statements about “economies” can be reasonably applied to a country like India. Thus, Assumption I is valid.
Assumption II is valid: The passage highlights the “collapse in the price of solar energy” as strong evidence for path-dependent innovation and cost reduction. It argues that early action helps reduce costs. If other green technologies were to follow a similar pattern of rapid cost reduction due to learning-by-doing and economies of scale, it is a reasonable inference that the overall green transition would become easier. The passage’s logic supports the idea that such patterns facilitate smoother transitions. Therefore, Assumption II is also valid.
Since both assumptions are reasonably inferred from the passage’s arguments about the benefits of early, path-dependent green investments and the example of solar energy, option (c) is the most appropriate answer. This question assesses the ability to draw logical inferences and identify underlying assumptions from a given text, a crucial skill for the CSAT.