Two statements numbered I and II are given. There may be cause and effect relationship between the two statements. Read both statements and choose the correct option. Statements: I. The prices of petroleum products dropped marginally last month. II. The State Government reduced the tax on petroleum products last month.
Statement II is the cause and statement I is its effect
Understanding the Cause and Effect in Petroleum Pricing
This question asks us to identify the relationship between two statements concerning petroleum product prices and government taxes.
Statement I states: The prices of petroleum products dropped marginally last month.
Statement II states: The State Government reduced the tax on petroleum products last month.
Analyzing the Statements
Let's break down the potential relationship:
- Statement II: Tax Reduction - When a government reduces taxes (like excise duty or VAT) on any commodity, the cost of that commodity decreases for the seller or distributor.
- Statement I: Price Drop - This decrease in cost due to lower taxes is typically passed on to the consumers, resulting in a lower selling price for the product.
Therefore, the action described in Statement II (reducing taxes) directly leads to the outcome described in Statement I (prices dropping).
Identifying the Cause and Effect
Based on the analysis:
- The reduction in taxes by the State Government (Statement II) is the action or the cause.
- The marginal drop in the prices of petroleum products (Statement I) is the result or the effect of this tax reduction.
This establishes a clear cause-and-effect relationship where Statement II causes Statement I.
Evaluating the Options
Comparing this conclusion with the given options:
- Option 1 suggests Statement I causes Statement II, which is incorrect. Price drops don't typically cause governments to reduce taxes.
- Option 2 suggests both are effects of common causes. While possible in complex scenarios, the direct link here is stronger.
- Option 3 suggests they are independent causes, which is clearly false given their nature.
- Option 4 correctly identifies Statement II as the cause and Statement I as its effect.
Thus, the most logical relationship is that the government's decision to reduce taxes directly impacted and lowered the prices of petroleum products.
Important Questions from Cause and Effect
In this question, two statements I and II have been given. 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 statements and select the correct answer.
I. Since the past three years, State M has reported a sharp and substantial decline in the state’s agricultural produce.
II. In the last five years, there has been an increase in the overall average Rainfall by 6% in State M bringing respite to the farmers.
In this question, two statements I and II have been given. These statements may be independent causes or effects of independent causes or a common cause. One of the statements maybe the effect of the other statement. Read both statements and select the correct answer.
I. This year College X reduced the cut-off marks to 50 from 60 for the entrance exam.
II. In the last two years, the Students Union in College X has been actively negotiating with the college administration regarding the Quality of food and Health and Hygiene standards at the College Canteen.
In this question, two statements I and II have been given. 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 statements and select the correct answer.
I. Over the last two years 22% of the Company P’s manpower was laid off.
II. Over the past two years Company P has sold off many of their major assets.
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.
