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Question

In this question, two statements, I and II, have been given. These statements maybe independent causes, or effects of independent causes or a common cause. One of the statements maybe the effect of the other statement. Read both the statements and select the correct answer. 
I. Citizens of city X have multiplied their wealth by investing in government schemes in the past two years. 
II. City X has seen a recent rise in the number of luxury cars.

This question was previously asked in
RRB NTPC 2024 Undergraduate CBT 1 Question Paper (29-Aug-2025) (Shift 1)
The correct answer is

Both I and II are effects of independent causes.

Statement Analysis: City X Economy

This question requires us to analyze two statements about the economic situation in City X and determine the relationship between them. We need to assess if they are independent causes, effects of independent causes, or if one causes the other.

Analyzing Statement I: Wealth Growth

Statement I says: Citizens of city X have multiplied their wealth by investing in government schemes in the past two years.

  • Key Points: This statement highlights a specific reason for wealth increase – investment in government schemes. It indicates a positive financial outcome for citizens over a defined period (past two years). This suggests successful financial strategies or beneficial schemes are at play.

Analyzing Statement II: Luxury Car Market

Statement II says: City X has seen a recent rise in the number of luxury cars.

  • Key Points: This statement points to an increase in high-value consumer spending, specifically on luxury cars. This trend is described as recent. A rise in luxury car sales typically indicates increased purchasing power and disposable income among a segment of the population.

Determining the Cause-Effect Relationship

Now, let's evaluate the relationship between Statement I and Statement II:

Statement I suggests that citizens have become wealthier due to specific actions (investing in government schemes). Statement II indicates a visible sign of increased wealth or spending capacity (more luxury cars).

Consider the possible relationships:

  • Are they independent causes? No, increased wealth (I) could plausibly lead to buying more luxury cars (II).
  • Is I a cause and II an effect? It's possible that the wealth generated from government schemes (I) directly enabled citizens to purchase more luxury cars (II). However, the options suggest a different interpretation might be intended.
  • Are they effects of a common cause? A general economic boom in City X could lead to both successful government schemes yielding wealth (I) and increased purchasing power for luxury goods (II).
  • Are they effects of independent causes? This means that the factors causing wealth multiplication (Statement I) are separate from the factors causing the rise in luxury cars (Statement II). For instance:
    • The success of specific government schemes could be one independent cause leading to increased citizen wealth (I).
    • A separate factor, like a surge in high-paying jobs in a new industry or a general increase in disposable income due to other economic activities, could be an independent cause leading to the rise in luxury cars (II).
    While wealth increase (I) certainly facilitates buying luxury cars (II), the underlying *drivers* for both phenomena might stem from different, independent sources. The increase in wealth might be concentrated or driven by specific policy successes, whereas the luxury car market might be responding to broader economic trends or a different segment of the population's increased affluence. This aligns with the interpretation that both are observable effects stemming from distinct underlying factors.

Based on the analysis, the most fitting description is that both statements represent effects stemming from separate, independent causes. The wealth multiplication is driven by factors related to government schemes, and the rise in luxury cars is driven by other economic factors influencing consumer spending.

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Similar Questions

  1. Given below are two statements numbered I and II. These statements may be independent causes or effects of independent causes or a common cause. One of the statements may be the effect of the other statement. Read both the statements carefully and select the correct answer. Statements: Traffic police has issued a traffic advisory regarding the diversion of traffic for the next two days due to closure of Raj Bhavan Road. The Municipal Corporation is planning to repair the pot holes in Raj Bhavan Road tomorrow.
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  3. Given below is a statement followed by two possible reasons numbered I and II. Read the statement carefully and decide which of the two explain(s) the event/observation/information given in the statement.

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  4. Given below is a cause followed by three effects numbered I, II and III. Read the cause carefully and decide which of the three can be a/the possible effect(s).

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  7. Given below is a statement followed by two possible reasons numbered I and II. Read the statement carefully and decide which of the two explain(s) the event/observation/information given in the statement.

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Important Questions from Cause and Effect

  1. Direction: In the following question two statements numbered I and II are given. There may be cause and effect relationship between the two statements. These two statements may be effects of the same cause or independent causes. These statements may be independent causes without having any relationship. Give answer. 
    I. The life today is too fast, demanding and full of variety in all aspects which at times leads to stressful situations. 
    II. Number of suicide causes among teenagers is on increase.

  2. Direction: In the following question two statements numbered I and II are given. There may be cause and effect relationship between the two statements. These two statements may be effects of the same cause or independent causes. These statements may be independent causes without having any relationship. Give answer. 
    I. There has been a high increase in the incidents of atrocities against women in the city during the past few months. 
    II. The police authorities have been unable to nab the culprits who are committing crimes against women.

  3. Given below is a statement followed by three conclusions I, II and III. Assuming the statement to be true, decide which of the conclusion logically follow(s)? 

    Statement: The rise in inflation is likely to increase interest rates. 

    Conclusions : 

    (I) There will be decline in the number of borrowers. 

    (II) There will be more deposits in bank. 

    (III) The rate of unemployment will fall.

  4. Read the given statements and decide which of the conclusions given in the options logically follow from the statements.

    Statements:
    I. The police has increased vigilance during late night hours.
    II. Incidents of petty crimes have reduced in the late night hours.
  5. There are 20 people in a party. If every person shakes hand with every other person, then what will be the total number of handshakes?
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