With reference to the above passage, the following assumptions have been made:
- 1.Lower tax rates in a country invariably translate into greater investments in higher education.
- 2.Investment in the education of children ensures their economic freedom.
- 3.Economic freedom has a positive impact on building up human capital.
Which of the above assumptions is/are valid?
Answer & explanation
Answer: (c) 3 only
The author argues that people invest more in education when they can keep its returns, that is, when economic freedom is greater. That supports the general link between economic freedom and human capital (3), but not the absolute claim in 1 or the reversed claim in 2.
- ✗ 1. Lower taxes make investing in education sensible, but 'invariably' is too strong, and the passage speaks of education in general, not 'higher education' alone.
- ✗ 2. The passage runs the other way: economic freedom encourages investment in education. It never says education guarantees economic freedom.
- ✓ 3. 'The return on education increases as the level of economic freedom rises', so people invest more in education — that is, in human capital.
Remember · Watch for absolute words ('invariably', 'ensures') and for reversed cause and effect — both usually make an assumption invalid.
Question and answer: UPSC's official GS Paper II (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·