Cause–Effect reasoning: Assess whether policy liberalization explains a national carrier's capacity increase. Statement I: The Government allowed private Indian airlines to operate to overseas destinations. Statement II: The national carrier increased its flights to overseas destinations. Choose the correct option describing the relationship.
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 are independent causes
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DBoth are effects of independent causes
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EBoth are effects of a common cause
Answer
Correct Answer: Statement I is the cause and Statement II is its effect
Explanation
Logic Opening routes to private competitors increases competitive pressure; a typical strategic response is to add capacity and frequencies on lucrative sectors.
Causal chain Policy liberalization (I) → competition signal → national carrier scales up overseas flights (II).
Final Answer Statement I is the cause and Statement II is its effect