Verbal Reasoning - Cause and Effect - Discussion
Discussion Forum : Cause and Effect - Cause and Effect (Q.No. 21)
Directions to Solve
Below in each of the questions are given 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 statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements.
Mark answer
- (A) If statement I is the cause and statement II is its effect.
- (B) If statement II is the cause and statement I is its effect.
- (C) If both the statements I and II are independent causes.
- (D) If both the statements I and II are effects of independent causes.
- (E) If both the statements I and II are effects of some common cause.
21.
Statements:
- The Government has increased rates of petrol and diesel by 10% from the immediate effect.
- Oil producing countries have decided to increase 10% of production on crude oil from the last quarter.
Answer: Option
Explanation:
Both statements I and II are the effects of independent causes.
Discussion:
9 comments Page 1 of 1.
Vimal Muthupandi said:
2 years ago
Statement II (increase in crude oil production) could be the cause: When oil-producing countries decide to increase crude oil production, there is a higher supply of crude oil available in the market. This increased supply could potentially lead to a decrease in the cost of production for petrol and diesel, which might prompt the government to increase rates by a smaller percentage (10%).
Statement I (increase in petrol and diesel rates) could be the effect: If there's an increase in crude oil production, it could lead to a decrease in the cost of raw materials for petrol and diesel. This decrease in cost might influence the government to increase the rates of petrol and diesel by a smaller percentage (10%) to capture some of the potential cost savings.
So, the relationship between the two statements could be that Statement II is the cause, and Statement I is the effect.
Statement I (increase in petrol and diesel rates) could be the effect: If there's an increase in crude oil production, it could lead to a decrease in the cost of raw materials for petrol and diesel. This decrease in cost might influence the government to increase the rates of petrol and diesel by a smaller percentage (10%) to capture some of the potential cost savings.
So, the relationship between the two statements could be that Statement II is the cause, and Statement I is the effect.
(2)
Preeti said:
6 years ago
The answer should be "E" as the production increased due to the increamental demand that led to hike in the price so a common cause in the context is "Demand".
(1)
Shikha said:
7 years ago
Why not E? please explain.
Ravjeet said:
8 years ago
Answer can never be A as in the Second statement. There is nowhere mentioned that Production COST has been increased it is written Production is increased which is positive but gov has increased Taxes which is negative. So effects are there in both statements. But what is the cause why Countries increased production may be diff from why govt increased taxes?
(2)
Ujjwal said:
1 decade ago
Production has increased as per stmt-2, does not relate with increase in price. So both are independent.
Asif Akbari said:
1 decade ago
All are talking rubbish here no where mentioned that countries have increased the production cost, they have increased production.
My point of view is that as demand has increased hence countries have increased production at the same time govt has increased cost so. Isn't the answer "E".
My point of view is that as demand has increased hence countries have increased production at the same time govt has increased cost so. Isn't the answer "E".
Anne said:
1 decade ago
I would agree that if oil producers increase price of fuel the gov't would follow the increase as a matter of economic balance.
Answer is A.
Answer is A.
Isha said:
1 decade ago
Due to increase in the cost of crude oil by oil producing nations, Gov has to increase the cost of the oil by 10 % .. So answer should be 'A'
Anand said:
1 decade ago
It may be possible since the countries have increased production cost so the government of country has increased the cost
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