Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Statements: I. The Laptop manufacturing companies have recently increased the prices of Laptops. II. The Government recently increased the duty on Laptops.
Analyzing Statement I: Laptop Price Increase
Statement I points out that laptop manufacturing companies have recently increased the prices of laptops. This is a common occurrence in markets where costs might rise or demand is high.
Analyzing Statement II: Government Duty Increase
Statement II states that the Government recently increased the duty on Laptops. A 'duty' in this context usually refers to a tax imposed on imported goods or sometimes on domestically produced goods.
Determining the Relationship Between Statements
To understand the connection, consider how government policies affect business costs:
- An increase in government duty (like an import tax or excise tax) directly increases the cost for companies that manufacture or import laptops.
- When the costs associated with producing or selling a product go up, companies often pass these increased costs onto consumers to maintain their profit margins.
- Therefore, an increase in government duty on laptops (Statement II) is a direct factor that would likely lead to an increase in laptop prices (Statement I).
This establishes a cause-and-effect relationship where Statement II is the cause, and Statement I is the effect.
Evaluating the Options
Let's look at the given options:
- Option 1 suggests both are effects of independent causes. This is unlikely, as the two events are clearly linked economically.
- Option 2 suggests Statement I (price increase) is the cause of Statement II (duty increase). This is illogical; companies raising prices doesn't typically cause the government to impose or increase duties.
- Option 3 suggests Statement II (duty increase) is the cause of Statement I (price increase). This aligns perfectly with economic principles where increased taxes lead to increased prices.
- Option 4 suggests both are independent causes. As discussed, they are likely dependent.
Based on this analysis, the most accurate conclusion is that the government's decision to increase duty on laptops is the reason behind the companies raising their prices.
Similar Questions
Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements.
Statements :
I. Police authority has recently increased vigil during the morning hours in the city.
II. There has been a considerable reduction in the incidents of petty crimes in the city.
Important Questions from Cause and Effect
Directions: Given below is a pair of statements (i) and (ii). Assuming that the information given in both (i) and (ii) is true, decide the nature of their relationship. To determine the answer, do not assume anything beyond the given information.
Statement (i): High level of air pollution in the city
Statement (ii): Increase in respiratory and health-related problems in the population
Below a question is given with two statements (I) and (II). These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements.
I. The staff of the factory called off the strike they were holding protesting against the low wages.
II. The staff of the factory went on a strike, anticipating a threat to their jobs.
Directions: The question below is given two statements I and II. These statements may be either independent causes or maybe the effects of independent causes or a common cause. One of the statements may be the effect of the other statements. Read both the statements and decide which of the answer choice correctly depicts the relationship between these two statements.
Statements:
I. Deirdre is an environmentalist and has collected many evidences of untreated sewage water being drained into the rivers and oceans to present in her case study.
II. Deirdre has been visiting schools in various cities with her acolytes and giving presentations on sustainable use of freshwater.
Directions : Read the passage and answer the following question.
Statement: Prime Minister Narendra Modi is all set tomorrow to launch three mega flagship schemes aimed at transforming urban India, including the much talked about Smart Cities proposal, with a whopping Rs 4 lakh crore kitty having been lined up for the projects. Urban Development Minister States and local bodies will play a key role in the execution of these schemes, the minister said, adding that there will also be a lot of scope for private participation.
"Effective management of growing urbanization is a major challenge towards the making of resurgent India. Resource management is a major challenge. The government, through these schemes, is looking to bring about a transformation of urban India with the critical goal of making the country an economic hub. Speaking at the event, Modi said, " The decision to make cities smart will be taken not by governments but by the people of the city, the local administration. Let there be competition between the cities in that smart cities come up".Which of the following will be an effect of the initiative taken by the government?
Three statements are given numbered as I, ।I and III. Considering all the things given in the statements to be true, determine the cause and effect relationship between these statements and decide which statement(s) is/are the cause and which statement(s) is/are the effect.
Statement:
I. Job stress should top the list of stressors compared to other factors such as family responsibilities and personal health concerns.
II. Excessive amount of work and unrealistic deadlines make people more anxious and stressed.
III. Companies are providing fair salary as per the work profile.
