Passage Based Questions for Critical Reasoning - 2 | Logical Reasoning for CLAT PDF Download

Read the passage given below and answer the questions:

The gig economy, characterized by short-term, flexible jobs through platforms like Uber and Swiggy, has reshaped India’s labor market. Over 8 million workers, primarily youth, engage in gig work, drawn by its flexibility and low entry barriers. A 2024 survey indicates that 70% of gig workers value the ability to set their own schedules, but 60% earn below the minimum wage after expenses. Supporters of the gig economy argue it empowers workers by offering income opportunities in areas with high unemployment, particularly for low-skilled individuals. They cite examples of drivers earning supplementary income during economic downturns.

However, critics highlight significant drawbacks, including lack of job security, health benefits, or legal protections. Many gig workers face unpredictable incomes and high platform commissions, reducing net earnings. A 2024 study found that 45% of gig workers reported financial stress due to income volatility. Critics advocate for regulations to classify gig workers as employees, ensuring benefits like insurance and paid leave. Platform companies counter that such regulations would raise costs, potentially reducing job opportunities. They propose voluntary welfare programs, like subsidized insurance, as a compromise. The debate raises questions about balancing worker protections with the gig economy’s flexibility, requiring policymakers to address exploitation without stifling economic innovation.

1. What is a key reason gig workers are attracted to the gig economy, as per the passage?
(A) High wages compared to traditional jobs
(B) Flexible work schedules
(C) Comprehensive health benefits
(D) Guaranteed job security

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2. Which of the following, if true, would most strengthen the critics’ argument for regulating the gig economy?
(A) Most gig workers prefer flexibility over fixed salaries.
(B) Regulations in other countries have improved gig worker wages without reducing jobs.
(C) Platform companies have increased commissions to cover welfare costs.
(D) Gig workers are unaware of existing voluntary welfare programs.

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3. The passage implies that platform companies oppose regulations primarily because:
(A) Regulations could increase costs and reduce job opportunities.
(B) They prioritize worker welfare over profits.
(C) Gig workers do not want employee status.
(D) Voluntary programs are more effective than regulations.

Answer: (A) Regulations could increase costs and reduce job opportunities.
The passage states companies argue regulations “would raise costs, potentially reducing job opportunities,” aligning with (A).

4. According to the passage, what is a major drawback of the gig economy for workers?
(A) Lack of opportunities for low-skilled individuals
(B) High platform commissions and income volatility
(C) Mandatory participation in welfare programs
(D) Excessive job security

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5. Which of the following best addresses the critics’ concerns about gig worker protections?
(A) Increasing platform commissions to fund benefits
(B) Offering voluntary welfare programs without regulations
(C) Classifying gig workers as employees with benefits
(D) Reducing the flexibility of gig work schedules

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