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.

QUESTION

CSAT

Medium

Comprehension

Prelims 2025

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?

Select an option to attempt

Explanation

Assumption I is correct: The passage clearly states that corporate capitalism “generates jobs” and helps address unemployment. This implies growth of the labour force and more employment opportunities.

Assumption II is incorrect: The passage does mention that higher State revenues can support welfare for the marginalized, but this is through government intervention, not due to an automatic trickle-down effect. So the passage does not assume trickle-down benefits directly from corporate capitalism.