Based on the above passage, the following assumptions have been made: 1. Protection of privacy is not just a right, but it has value to the economy. 2. There is a fundamental link between privacy and innovation. Which of the above assumptions is/are valid?

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

Answer: C

Explanation

Let’s evaluate each assumption based on the passage:
1. ‘Protection of privacy is not just a right, but it has value to the economy.’ The passage states, ‘The ultimate control of data must reside with the individuals who generate it; they should be enabled to use, restrict or monetize it as they wish.’ The ability to ‘monetize’ data implies an economic value. Furthermore, the opening sentence links ‘growth of the digital economy’ with ‘keeping personal data… secure and protected,’ suggesting privacy protection contributes to economic growth. So, assumption 1 is valid.
2. ‘There is a fundamental link between privacy and innovation.’ The passage explicitly states, ‘No one will innovate in a surveillance-oriented environment or in a place where an individual’s personal information is compromised.’ It concludes that ‘data protection laws should enable the right kind of innovation – one that is user-centric and privacy protecting.’ This directly establishes a fundamental link between privacy and the fostering of innovation. So, assumption 2 is valid.
Therefore, both assumptions 1 and 2 are valid. This question tests the ability to identify direct and indirect assumptions made within the text, a critical skill for CSAT.