Logical Reasoning - Statement and Assumption

In each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.

11. 

Statement: Let us increase the taxes to cover the deficit.

Assumptions:

  1. The present taxes are very low.
  2. Deficit in a budget is not desirable.
  3. If the taxes are not increased, the deficit cannot be met.

A. Only I and II are implicit
B. Only II and III are implicit
C. Only I and III are implicit
D. All are implicit
E. None of these

Answer: Option B

Explanation:

Clearly, the statement shows that the present taxes are not sufficient to meet the deficit but they may still be high. So, I is not implicit. Since the statement talks of covering the deficit, so II is implicit. Also, the taxes are increased to meet the deficit. So, III is also implicit.

12. 

Statement: "We must introduce objective type tests to improve our examinations for admission to MBA." - The Chairman of the Admission Committee tells the Committee.

Assumptions:

  1. The admission at present is directly through the interview.
  2. The Admission Committee is desirous of improving the admission examinations.
  3. The Chairman himself is an MBA.

A. Only I and III are implicit
B. Only II is implicit
C. Only I and II are implicit
D. Only I is implicit
E. None is implicit

Answer: Option B

Explanation:

Nothing about the present method of admission or the qualification of the Chairman is mentioned in the statement. So, neither I nor III is implicit. Assumption II directly follows from the statement. So, II is implicit.

13. 

Statement: Use 'X' brand shoes. These are durable and available in all sizes. - An advertisement in the newspaper A.

Assumptions:

  1. Normally people like durable shoes.
  2. Very few people read advertisement in a newspaper.
  3. Very few people read the newspaper A.

A. None is implicit
B. Only I and II are implicit
C. Only I, and either II or III are implicit
D. All are implicit
E. None of these

Answer: Option E

Explanation:

Any advertisement highlights only the desirable qualities of the product. So, I is implicit. The 'X' brand has advertised its product in newspaper A. This implies that a large section of people reads advertisements in newspapers and that newspaper A too has a wide circulation. So, neither II nor III is implicit.

14. 

Statement: The State Government has unilaterally increased by five percent octroi on all commodities entering into the state without seeking approval of the Central Government.

Assumptions:

  1. The State Government may be able to implement its decision.
  2. The Central Government may agree to support the State Government's decision.
  3. The State Government may be able to earn considerable amount through the additional octroi.

A. None is implicit
B. Only I and II are implicit
C. All are implicit
D. Only II and III are implicit
E. None of these

Answer: Option C

Explanation:

Since the State Government has increased the octroi, so I is implicit. Since the decision has been taken without the approval of the Central Government, it implies that Central Government would not confront the new policy. So, II is implicit. Since octroi is collected by the state on all commodities entering the state, so III is also implicit.

15. 

Statement: In the recently held All India Commerce Conference the session on 'Management of Service Sector in India' surprisingly attracted large number of participants and also received a very good media coverage in the leading newspapers.

Assumptions:

  1. People were not expecting such an encouraging response for service sector.
  2. Service sector is not managed properly in India.
  3. Media is always very positive towards service sector.

A. None is implicit
B. Only I is implicit
C. All are implicit
D. Only II and III are implicit
E. Only either I or III is implicit

Answer: Option B

Explanation:

Since the response was 'surprising', so I is implicit. Nothing about the real management of service sector can be deduced from the statement. So, II is not implicit. Also, the statement talks of the media's response to only a particular session on service sector and not all in general. So, III is also not implicit.