Read the following passage and answer the items that follow Your answers to these items should ...........

English Comprehension Reading Comprehension (C)

Read the following passage and answer the items that follow. Your answers to these items should be based on the passages only.

People will invest in education whenever they are granted the economic freedom to fully enjoy benefits Again, this is for the obvious reason that the return on education increases as the level of economic freedom rises. When people, thanks to lower tax rates, are allowed to retain of the higher income that they gain from incremental level of education, it makes sense to invest in education. On the other hand, when the government decides to tax the higher income of educated individuals at even higher rates, it makes very little sense to invest in educating oneself further. The same incentives apply to parents who decide on whether to invest in their children's education.

With reference to the above passage, the following assumptions have been made:

Lower tax rates in a country invariably translate into greater investments in higher education.
Investment in the education of children ensures their economic freedom.
Economic freedom has a positive impact on building up human capital.

Which of the above assumptions is/are valid?

This questions was previously asked in

Complete-Test, Previous year (2020)

Download PDF Appear Online

View All CSAT Previous Year Papers

1 only

2 only

3 only

1, 2 and 3

छोटे Courses बड़े Results

Master Reading Comprehension (C)

Prepare through Micro-courses

Try Now

Explanation:

Sol. Ans.(a). Theme is “Education and Taxation”.

The term “human capital” is not explicitly mentioned in the passage, though some may feel it is an automatic outcome of more education for more people. But we cannot be sure if it is indeed assumed. So 3 is ruled out, and hence options (c) and (d) are ruled out.

Statement 2 is not correct. Investment in children’s education (by parents) will be decided by factors like whether they will be able to use their education later, properly in an economic sense. It is not proper to derive the relation that “investment in education ensures economic freeom”.

So best answer is (a).