Policy review statement — what can be concluded Statement: • Government spokesman: “The Government will review the present policy of diesel price in view of a further spurt in international oil prices.” Conclusions to evaluate: I. The Government will increase the price of diesel after the imminent spurt in international oil prices. II. The Government will not increase the price of diesel even after the imminent spurt in international oil prices.

Difficulty: Easy

Correct Answer: Neither I nor II follows

Explanation:


Introduction / Context:
Government policy reviews do not automatically mean a price hike or a price freeze. The spokesman only commits to reconsideration in light of external price movement. We must decide whether a definite outcome can be concluded now.



Given Data / Assumptions:

  • International oil prices may rise further.
  • The Government will review current diesel price policy.
  • No decision has been announced yet.


Concept / Approach:
From a review announcement, the only necessary inference is that authorities will evaluate options. Any firm outcome (increase or no increase) requires additional information, which we do not have. Therefore definite predictions do not follow.



Step-by-Step Solution:

Conclusion I presumes an increase. This could happen, but it is not necessary. The review could lead to subsidies, staggered revisions, or non price measures.Conclusion II presumes no increase. That is also possible but not guaranteed. Hence neither I nor II follows with certainty.


Verification / Alternative check:
Consider two scenarios consistent with the statement: scenario A raises prices; scenario B holds prices but changes tax structures. Since both fit, neither definite conclusion follows.



Why Other Options Are Wrong:

  • Only I or only II: each asserts a specific outcome without evidence.
  • Either I or II: expresses an exclusive certainty that one must happen; the review could also produce mixed measures, making the either claim invalid.
  • Both: impossible since they contradict each other.


Common Pitfalls:
Treating review as a coded message for one fixed action; ignoring alternative instruments in fuel pricing policy.



Final Answer:
Neither I nor II follows

More Questions from Statement and Conclusion

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