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Question

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.

The correct answer is

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.

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Important Questions from Cause and Effect

  1. Two statements numbered I and II are given. There may be a cause-and-effect relationship between the two statements. These two statements may be the effect of the same cause or independent causes. These statements may be independent causes without having any relationship. Read both the statements and decide which of the following options correctly depicts the relationship between these two statements.

    Statements:

    I. The Government has said that the elderly are not required to produce a doctor’s certificate for the third Covid-19 vaccination dose.

    II. In view of the raise in Omicron cases, people should avoid unnecessary travel and gatherings, advises the Central Government.

  2. Temperatures have risen nearly five times as rapidly on the Western Antarctic Peninsula than the global average over the past five decades. Researchers have now found that melting glaciers are causing a loss of species diversity among benthos in the coastal waters off the Antarctic Peninsula, Impacting an entire seafloor ecosystem. They Believe increased levels of suspended sediment in water to be the cause of the dwindling biodiversity in the coastal region. 

     On the basis of the above passage, the following assumptions have been Made : 

    1. Regions of glaciers warm faster than other regions due to global warming. 

    2. Global warming can lead to seafloor sedimentation in some areas. 

    3. Melting glaciers can reduce marine biodiversity in some areas. 

    Which of the above assumptions is/are valid?

  3. A research team examined a long-term owl roost. Owls prey on small mammals and the excreted remains of those meals that accumulated over the time, provide us an insight into the composition and structure of small mammals over the past 'millennia. The research suggested that when the Earth went through a period of rapid warming about 13,000 years ago, the small mammal community was stable and resilient. But, from the last quarter of the nineteenth century, human-made changes to the environment had caused an enormous drop in biomass and energy flow. This dramatic decline in energy flow means modern ecosystems are not adapting as easily as they did in the past. 

     On the basis of the above passage, the following assumptions have been made : 

    1. Global warming is a frequently occurring natural phenomenon. 

    2. The impending global warming will not adversely affect small mammals. 

    3. Humans are responsible for the loss of the Earth's natural resilience. 

    Which of the above assumptions is/are valid ?

  4. Food varieties extinction is happening all over the world --- and it is happening fast. For example, of the 7,000 apple varieties that were grown during the nineteenth century, fewer than o hundred remain. In the Philippines, thousands of varieties of rice once thrived; now only up to a hundred are grown there. In China, 90 percent of the wheat varieties cultivated just a century ago have disappeared. Farmers in the past painstakingly bred and developed crops well suited to the peculiarities of their local climate and environment. In the recent past, our heavy dependence on a few high yielding varieties and technology-driven production and distribution of food is causing the dwindling of diversity in food crops. If some mutating crop disease or future climate change decimates the few crop plants we have come to depend on to feed our growing population, we might desperately need some of those varieties we have let go extinct. 

     On the basis of the above passage, the following assumptions have been made : 

    1. Humans have been the main reason for the large scale extinction of plant species. 

    2. Consumption of food mainly from locally cultivated crops ensures crop diversity. 

    3. The present style of production and distribution of food will finally lead to the problem of food scarcity in the near future. 

    4. Our food security may depend on our ability to preserve the locally cultivated varieties of crops. 

    Which of the above assumptions are valid ?

  5. 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.

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