Difficulty: Easy
Correct Answer: If II is the immediate cause and I is its effect.
Explanation:
Introduction / Context:
The paradox—largest producer yet not largest exporter—suggests heavy internal absorption. High domestic consumption naturally explains lower exportable surplus.
Given Data / Assumptions:
Concept / Approach:
Exports = Production − Domestic Consumption − Stock Change. If domestic consumption is high, exportable surplus shrinks. Thus II → I.
Step-by-Step Solution:
Verification / Alternative check:
Were domestic consumption low, exports would likely be higher, contradicting I.
Why Other Options Are Wrong:
They invert or weaken the core surplus logic.
Common Pitfalls:
Ignoring that export rank depends on surplus, not merely on gross output.
Final Answer:
Option B: II is the immediate cause and I is its effect.
Discussion & Comments