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Statement and Assumption

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: 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

ANS:C - All are implicit

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.



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