With reference to the above passage, the following assumptions have been made:
- 1.Modern democracies rely on the market forces to enable them to be welfare states.
- 2.Markets ensure sufficient economic growth necessary for democracies to be effective.
- 3.Government programmes are needed for those left behind in economic growth.
Which of the above assumptions is/are valid?
Answer & explanation
Answer: (b) 3 only
Markets reward endowments and skills, but some people are too poor or handicapped to benefit, and capitalism has bursts of unemployment. The passage therefore assumes welfare cannot be left entirely to markets — government programmes are needed for those left behind.
- ✗ 1. The passage stresses a 'built-in tension between markets and democracy' and asks why welfare cannot be left to markets; it does not say democracies rely on markets to be welfare states.
- ✗ 2. Markets 'may' help, but 'capitalism has always witnessed bursts of unemployment' — the passage does not claim markets ensure sufficient growth.
- ✓ 3. Some people 'never get the opportunity to develop skills that markets demand', so a democracy cannot avoid welfare — state support for those left behind is assumed.
Remember · A passage that lists what markets cannot do assumes a role for the state; it does not assume markets deliver what it doubts.
Question and answer: UPSC's official GS Paper II (2021, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·