Home » Verbal Reasoning » Cause and Effect

Cause–Effect reasoning: Judge whether the two policy and production moves are causally linked. Statement I: The Government increased petrol and diesel rates by 10 percent with immediate effect. Statement II: Oil-producing countries decided to increase crude oil production by 10 percent from the last quarter. Choose the correct option describing the relationship.

Difficulty: Easy

Statement I is the cause and Statement II is its effect
Statement II is the cause and Statement I is its effect
Both are independent causes
Both are effects of independent causes
Both are effects of a common cause

Correct Answer: Both are effects of independent causes

Explanation:

Analysis
A production increase tends to ease global crude prices, whereas a domestic retail price hike can stem from taxation, under-recoveries, or fiscal policy choices.

Conclusion
The two moves plausibly arise from separate decisions and constraints; no direct causal link is compelled.

More Questions from Cause and Effect

Discussion & Comments