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      Question

      Read the passage below and determine which combination

      of the given statements can be correctly inferred from the text. Passage: The rapid rise of cloud-based automation and Artificial Intelligence (AI) has profoundly altered corporate operational models, integrating enterprise workflows through automated processing, real-time analytics, and algorithmic decision-making. While corporate organizations benefit from drastically reduced operational overhead and enhanced scalability, traditional administrative employees in service-heavy sectors often experience structural displacement and diminished wage leverage in roles exposed to algorithmic replacement. Meanwhile, tech-forward firms and specialized developers see massive surges in employment opportunities and capital investment, but also heightened vulnerability to rapid technological obsolescence and sudden computing infrastructure costs. Thus, the automation boom produces deeply uneven effects, creating both thriving winners and structurally displaced losers across and within industries. Statements: 1. The expansion of cloud-based automation and AI has yielded advantages for organizations through decreased overhead and expanded scalability. 2. Employees and firms across all sectors of the economy uniformly benefit from the rise of automation technologies. 3. The socioeconomic impacts of the automation boom vary significantly among different industry sectors and workforce demographics.
      A Only 1 and 2 Correct Answer Incorrect Answer
      B Only 2 and 3 Correct Answer Incorrect Answer
      C Only 1 and 3 Correct Answer Incorrect Answer
      D All 1, 2, and 3 Correct Answer Incorrect Answer
      E Only 1 Correct Answer Incorrect Answer

      Solution

      Statement 1 can be inferred. The passage explicitly states that "corporate organizations benefit from drastically reduced operational overhead and enhanced scalability." This directly supports the claim that automation has produced cost and scaling advantages for companies. Thus, Statement 1 is a valid inference. Statement 2 cannot be inferred. The text directly contradicts this by stating that "traditional administrative employees... experience structural displacement and diminished wage leverage." Because some workers face severe career disruptions while others thrive, claiming that everyone benefits "uniformly" is false. Thus, Statement 2 is incorrect. Statement 3 can be inferred. The passage concludes by stating that "automation boom produces deeply uneven effects, creating both thriving winners and structurally displaced losers across and within industries." It details specific, differing outcomes for corporate entities, traditional administrative staff, and tech-forward firms. This explicitly shows that the impacts vary widely by sector and demographic. Thus, Statement 3 is a valid inference. Therefore, because Statements 1 and 3 follow logically from the passage while Statement 2 is explicitly contradicted by it, C is the correct answer choice.

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