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UPSC Prelims 2025CSATGeneral Mental AbilityReading Comprehension - Assumptions

Q52. 52. With reference to the above passage, the following assumptions have been made:
I. Corporate capitalism promotes the growth of labour force and provides more employment opportunities.
II. Poor and marginalized sections of population are benefited by corporate capitalism due to trickle-down effect.

Which of the above assumptions is/are valid?

A. I only
B. II only
C. Both I and II✓ Correct
D. Neither I nor II

Detailed Solution

✓ Correct Answer: Option C

Assumption I: The passage explicitly states that corporate capitalism "generates jobs — and there is no other way to fix a country’s unemployment challenge without a further impetus to private business." This directly supports the idea that it provides more employment opportunities. The growth of the labor force is implicitly linked to the availability of jobs and the modernization process mentioned.

Thus, this assumption is valid. Assumption II: The passage mentions that a "vibrant corporate capitalist base also leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalised and creating a more level playing field in terms of opportunities." This describes a mechanism where the wealth generated by corporate capitalism (state revenues) is then used to benefit the poor and marginalized through welfare programs, which is a classic description of a trickle-down effect (where economic growth benefits the broader population, including the less privileged, through various channels).

Thus, this assumption is also valid. Since both statements are directly supported or reasonably inferred from the passage, option (c) is the correct answer. This question tests the ability to identify direct and indirect implications or assumptions within the text.

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