UPSC Prelims 2025 CSAT Paper II · Q52 of 78 Comprehension medium

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
  2. (b) II only
  3. (c) Both I and II ✓ UPSC's answer
  4. (d) Neither I nor II

Why the answer is (c)

• The passage explicitly states that corporate capitalism 'generates jobs' and is the only way to fix a country's unemployment challenge, which directly supports Assumption I regarding the promotion of the labour force and employment opportunities.

• The text mentions that a vibrant corporate capitalist base leads to additional revenues for the State, which are then used for 'greater welfare for the marginalized' and creating a 'more level playing field in terms of opportunities.'

• This mechanism of state revenue generation and redistribution to the poor and marginalized aligns with the concept of the 'trickle-down effect' described in Assumption II.

• Since the passage provides textual evidence for both the job creation aspect (Assumption I) and the welfare benefit to marginalized sections via state revenue (Assumption II), both assumptions are valid.

• Therefore, the correct option is (c) Both I and II.

Why the other options are wrong

(a) I only
This option is incorrect because it excludes Assumption II, which is supported by the passage's statement that state revenues from corporate capitalism are used for the welfare of the marginalized.
(b) II only
This option is incorrect because it excludes Assumption I, which is directly supported by the passage's assertion that corporate capitalism generates jobs and addresses unemployment.
(d) Neither I nor II
This option is incorrect because the passage explicitly supports both the job generation (Assumption I) and the welfare benefits to the marginalized (Assumption II).

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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