If admissions to educational institutions are based on merit, then only the students who are capable and deserve to undertake the course would get admission. This would, in turn, improve the quality and performance of the entire student class. So, argument 2 is strong. The weaker students would also be compelled to work better and get admissions, thereby improving the quality of work. Also, students are not weak; they may be good at something else. So, this might as well help the students to identify their strengths. Therefore, argument 1 does not hold true