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UPSC Prelims 2025 CSAT, question 4

Topic: Reading comprehension

Directions · Q1 to Q4

Directions for the following 4 (four) items :
Read the following two passages and answer the items that follow the passages. Your answers to these items should be based on the passages only.

Passage · Q3 to Q4

The history of renewable energy suggests there is a steep learning curve, meaning that, as more is produced, costs fall rapidly because of economies of scale and learning by doing. The firms' green innovation is path-dependent : the more a firm does, the more it is likely to do in the future. The strongest evidence for this is the collapse in the price of solar energy, which became about 90% cheaper during the 2010s, repeatedly beating forecasts. Moving early and gradually gives economies more time to adjust, allowing them to reap the benefits of path-dependent green investment without much disruption. A late, more chaotic transition is costlier.

Q4

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

I. Path-dependent green investments will eventually most likely benefit growth as well as public finances in a country like India.

II. If other green technologies follow the same pattern as that of solar energy, there will most likely be an easy green transition.

Which of the above assumptions is/are valid ?

  1. (a) I only
  2. (b) II only
  3. (c) Both I and IICorrect answer
  4. (d) Neither I nor II

Solution.

Answer: (c) Both I and II

  1. Statement I is correct: the passage states that moving early lets economies reap the benefits of path-dependent green investment without much disruption whereas a late transition is costlier, which implies gains for economic growth and public finances in economies like India.
  2. Statement II is correct: the author cites solar energy's 90% cost drop as the strongest evidence of the steep learning curve, assuming that other green technologies following the same falling-cost trajectory will enable a smooth green transition.

Trap: If Statement I is excluded on a narrower reading because India and public finances are not explicitly named in the passage, option (b) II only is the competing reading.