With reference to the above passage, the following assumptions have been made : I. Automobile factories are examples of the circular economy. II. Economic growth is compatible with circular use of mineral resources. 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: B

Explanation

Assumption I states that automobile factories *are examples* of the circular economy. The passage, however, describes a problem (“Less than 9% of this is reused”) and then proposes a solution: “Once batteries reach the ends of their lives, they *should go back* to a factory where their ingredients can be recovered.” This implies that current practices are *not* circular, but rather that the automobile industry *needs to adopt* circular practices. Therefore, Assumption I is not valid as it misrepresents the current state. Assumption II states that economic growth is compatible with the circular use of mineral resources. The passage argues that reusing materials “makes sense” due to the high cost and difficulty of obtaining new materials, and that recovering ingredients from old batteries helps alleviate supply and environmental risks. This strongly implies that adopting circular practices can support and sustain economic activity, making economic growth compatible with resource reuse. Hence, Assumption II is valid. This question tests the ability to infer assumptions accurately from the given text, a common requirement in CSAT.