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Statement and Assumption - Verbal and Reasoning

Directions to SolveIn 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.
Q1:

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

ANS:B - Only II and III are implicit

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.