Agri-economics causality: Farmers refusing to sell kharif crops to Government vs. reduced procurement price — identify which statement is cause and which is effect.
Verbal Reasoning
Cause and Effect
Difficulty: Easy
Choose an option
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AStatement I is the cause and statement II is its effect
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BStatement II is the cause and statement I is its effect
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CBoth the statements I and II are independent causes
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DBoth the statements I and II are effects of independent causes
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EBoth the statements I and II are effects of some common cause
Answer
Correct Answer: Statement II is the cause and statement I is its effect
Explanation
Given data
- I: Farmers decide not to sell their kharif produce to Government agencies.
- II: Government has reduced the procurement price of kharif crops from last month for six months.
Concept/Approach
- Price cuts reduce farmers' incentives to sell to the Government, prompting a refusal.
Step-by-Step reasoning1) Procurement price reduction (II).2) Farmers react by withholding sales to Government (I).3) Hence, (II) → (I).
Verification/Alternative
- (I) causing (II) would imply farmers' refusal triggered the earlier price cut; the dates contradict that.
Common pitfalls
- Missing the explicit timing: II began last month; I is a subsequent decision.
Final AnswerStatement II is the cause and statement I is its effect.