Passage

Many nations now place their faith in capitalism and governments choose it as the strategy to create wealth for their people. The spectacular economic growth seen in Brazil, China and India after the liberalisation of their economies is proof of its enormous potential and success. However, the global banking crisis and the economic recession have left many bewildered. The debates tend to focus on free market operations and forces, their efficiency and their ability for self correction. Issues of justice, integrity and honesty are rarely elaborated to highlight the failure of the global banking system. The apologists of the system continue to justify the success of capitalism and argue that the recent crisis was a blip. Their arguments betray an ideological bias with the assumptions that an unregulated market is fair and competent, and that the exercise of private greed will be in the larger public interest. Few recognize the bidirectional relationship between capitalism and greed; that each reinforces the other. Surely, a more honest conceptualisation of the conflicts of interest among the rich and powerful players who have benefited from the system, their biases and ideology is needed; the focus on the wealth creation should also highlight the resultant gross inequity.

The apologists of the “Free Market System”, according to the passage, believe in

(a) market without control by government authorities.
(b) market without protection by the government.
(c) ability of market to self correct. ✓ UPSC's answer
(d) market for free goods and services.

Why the answer is (c)

• The passage states that debates regarding the global banking crisis focus on 'free market operations and forces, their efficiency and their ability for self correction.'

• It explicitly links the 'apologists of the system' to the justification of capitalism's success, arguing that the recent crisis was merely a 'blip' rather than a systemic failure.

• This stance implies a belief in the market's inherent capacity to recover and regulate itself without external intervention, which is the definition of self-correction.

• The text contrasts this view with the need for honesty and integrity, suggesting that apologists rely on the assumption that the market will naturally fix its own issues.

• Therefore, the core belief attributed to these apologists in the context of the crisis is the market's ability to self-correct.

Why the other options are wrong

(a) market without control by government authorities.: The passage does not define the free market system by the absence of government control, but rather by its operational efficiency and self-correcting nature.
(b) market without protection by the government.: The text does not mention government protection as a defining characteristic or belief of the apologists.
(d) market for free goods and services.: The term 'free market' refers to economic operations and forces, not the provision of free goods and services.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2014, held on 24 August 2014. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.