Statement and Assumption - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.Give answer
  • (A) If only assumption I is implicit
  • (B) If only assumption II is implicit
  • (C) If either I or II is implicit
  • (D) If neither I nor II is implicit
  • (E) If both I and II are implicit.
Q1:

Statement: Equality of income throughout a community is the essential condition for maximising the total utility which the total income available could confer on the members of that community. Assumptions:
  1. If extra income were taken from the rich and given to the poor, the total utility experienced by the community would increase.
  2. Equal pay for equal work.

A Only assumption I is implicit

B Only assumption II is implicit

C Either I or II is implicit

D Neither I nor II is implicit

E Both I and II are implicit

ANS:A - Only assumption I is implicit

Explanation: The total utility can be maximised by equality of income throughout the community, i.e., by giving extra income from the rich to the poor. So, I is implicit. Also, II pertains to economic right and is not concerned with equality of income throughout the community. So, it is not implicit.