UPSC Prelims 2025·CSAT·Reading Comprehension·Passage Comprehension

There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the economy and enabling the transition from rural to urban, and agriculture to industry and services, which are inevitable with growth. It generates jobs - and there is no other way to fix a country's unemployment challenge without a further impetus to private business. Big companies can operate on a large scale and become competitive both domestically and externally. A vibrant corporate capitalist base also leads to additional revenues for the State - which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities. 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?

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Last updated 23 May 2026, 3:31 pm IST
  1. AI only
  2. BII only
  3. CBoth I and IICorrect
  4. DNeither I nor II

Explanation

The passage explicitly supports both assumptions. Assumption I: Corporate capitalism promotes the growth of labour force and provides more employment opportunities. The passage states, "It generates jobs - and there is no other way to fix a country's unemployment challenge without a further impetus to private business." This directly indicates that corporate capitalism (private business) leads to more employment opportunities. Assumption II: Poor and marginalized sections of population are benefited by corporate capitalism due to trickle-down effect. The passage mentions, "A vibrant corporate capitalist base also leads to additional revenues for the State - which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities." This describes a mechanism where economic gains from corporate capitalism generate state revenue, which is then used for the welfare of the marginalized, representing a form of trickle-down benefit. Since both assumptions are directly supported by the text, C is the correct answer. The final answer is C
Reading Comprehension: There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the econom
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