Corporate capitalism passage - Assumptions
Question
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.
- 1.
Corporate capitalism promotes the growth of labour force and provides more employment opportunities.
- 2.
Poor and marginalized sections of population are benefited by corporate capitalism due to trickle-down effect.
Options
I only
II only
Both I and II
Neither I nor II
Explanation
Statement I contains an economic inaccuracy relative to the text: while the passage states capitalism "generates jobs" (employment opportunities), it does not claim it grows the "labour force" (which is driven by population demographics, not job availability). Statement II uses the specific economic term "trickle-down effect," which means wealth naturally flows directly from the rich down to the poor. The passage explicitly advocates for state-mediated redistribution instead: corporate capitalism generates "additional revenues for the State which in turn, can be used for greater welfare."
Answer: (d).
Question details
Year
2025
Paper
CSAT
Question
Q72
Section
Reading Comprehension
Sub-topic
Economy / Polity passage
Type
RC - Assumption validation
Difficulty
Medium
Source hint
Passage-based comprehension
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