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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: The government has decided to reduce its subsidy on LPG; however the subsidy on kerosene remains unchanged. Assumptions:
  1. Those people who buy LPG can afford to purchase LPG for a higher price.
  2. Many people may stop buying LPG and instead use kerosene.

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: Clearly, the decision has been taken keeping in mind that the section of people using LPG can afford to pay a slightly higher price. The government does not want to affect the weakest sections who still use kerosene. So, only I is implicit, while II is not.