CSAT Solved Papers/ 2025/Q62

2025 CSAT — Q62

Verbal Reading comprehension 2.5 marks Hard

Passage

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?

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

Thinking pathway

Locate. This is a valid-assumption question — find the unstated premise the argument leans on — and watch which mechanism the passage actually names. The passage’s employment claim is explicit (“It generates jobs… no other way to fix… unemployment without… private business”) — that is Statement I. For the marginalized, the passage names a specific route: corporate revenues → the State → welfare and a level playing field.

Test — negate it, and check the mechanism. Negate I — suppose corporate capitalism does not provide employment — and the passage’s anti-unemployment argument collapses. So I is valid. Statement II says the marginalized benefit “due to trickle-down effect.” Negate II — “they are not benefited by trickle-down” — and the passage is not contradicted, because the passage never claimed market trickle-down; it claimed benefit via State-revenue-funded welfare, a deliberate redistribution. II attaches the wrong mechanism, so it is not the assumption the passage makes.

Eliminate by anatomy. (b) and (c) admit II, which gets the cause-and-effect direction wrong — it swaps the passage’s State-welfare channel for a market trickle-down channel, which are different (one is deliberate redistribution, the other is automatic market spillover). (d) wrongly rejects I, the explicit employment premise. The transferable rule: a benefit the passage routes through one mechanism is not an assumption when restated through a different mechanism. Key: (a).

Why this one is tricky (a close call). Statement II is a fine call: the passage clearly says the marginalized benefit, so it is tempting to accept II as “substantially” what the passage assumes. II is invalid because the passage’s stated channel is State-revenue-funded welfare/redistribution — the opposite of a laissez-faire “trickle-down effect.” The mechanism mismatch is the whole point: a benefit the passage routes through deliberate redistribution is not an assumption when restated as automatic market spillover. Key: (a).

Evidence in the text

Statement I: “It generates jobs — and there is no other way to fix a country’s unemployment challenge without a further impetus to private business” — the argument relies on corporate capitalism providing employment (I). Statement II: the passage routes benefit to the marginalized through STATE REVENUE and welfare (“additional revenues for the State — which… can be used for greater welfare for the marginalized”), i.e. deliberate redistribution — NOT a market “trickle-down effect.” II misattributes the mechanism the passage actually states.

Worked rationale

Statement I. The passage states corporate capitalism “generates jobs” and that there is “no other way to fix a country’s unemployment challenge without a further impetus to private business.” Providing employment is exactly the premise the anti-unemployment argument rests on. Negate I and that argument falls. I is valid.

Statement II. The passage does say the marginalized are benefited — but specifically because “a vibrant corporate capitalist base… leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalized.” That is benefit via State redistribution, not via a market “trickle-down effect.” II names the wrong mechanism; negating “trickle-down” does not contradict the passage’s State-welfare claim. II is invalid (mechanism mismatch).

Answer: (a) I only.

Why the other options miss

  • B
    cause and effect reversed: attributes the marginalized’s benefit to “trickle-down,” the opposite of the passage’s deliberate State-welfare redistribution — and rejects the genuine employment premise (I).
  • C
    half right, half wrong: takes I correctly but admits II, which names the wrong mechanism.
  • D
    an unsupported leap: over-rejects; misses the explicit employment premise (I).

Specialist insight

II is the trap that rewards reading the mechanism, not just the outcome. Both “trickle-down” and the passage’s route end in “the marginalized benefit,” so a fast reader equates them. But trickle-down is an automatic market spillover; the passage’s route is State revenue deliberately spent on welfare — a redistribution, even an anti-trickle-down stance. CSAT valid-assumption items reward catching that the passage assumed a different causal channel than the option asserts.

The trap, in one line

II credits "trickle-down" for the marginalized's benefit, but the passage routes it through State-revenue welfare (redistribution) — wrong mechanism; only I holds — (a).

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