Statement:\nThe Government decided to levy a toll tax of Rs 100 for every vehicle using the superhighway connecting the two big cities of the state.\n\nAssumptions:\nI. A majority of vehicles traveling between these two cities may not use the superhighway.\nII. The Government may not be able to recover the construction cost of the superhighway from toll collections.\n\nWhich of the above assumptions is implicit in the statement?

Difficulty: Medium

Correct Answer: Neither Assumption I nor II is implicit

Explanation:


Introduction / Context:
In statement–assumption questions, we test what must be believed for a decision to be sensible. Here, the Government levies a Rs 100 toll on a superhighway. We must see whether the decision logically presupposes (assumes) that most vehicles will avoid the road or that costs cannot be recovered.


Given Data / Assumptions:

  • Action: A toll of Rs 100 per vehicle for using the superhighway.
  • Assumption I: Most vehicles between the cities will not use the superhighway.
  • Assumption II: Cost of construction cannot be recovered through tolls.


Concept / Approach:
To levy a toll, the Government need not assume low usage or cost under-recovery. It may, in fact, expect adequate usage and partial/full cost recovery. Even if cost recovery is uncertain, the act of setting a toll does not require a belief that recovery is impossible.


Step-by-Step Solution:

1) Identify necessary beliefs: Users of the road should pay; tolling is an accepted mechanism for maintenance/cost sharing.2) Evaluate Assumption I: A belief that “most will not use” is not necessary for imposing tolls and is counter to typical objectives (encouraging use of faster infrastructure).3) Evaluate Assumption II: The decision does not need to presume failure to recover costs; tolls are often used precisely to attempt recovery.


Verification / Alternative check:
If many vehicles do use the road, the toll decision is still rational. If costs are recoverable, tolling remains sensible. Therefore neither I nor II is a must-have assumption.


Why Other Options Are Wrong:

• Only I or only II: Each is unnecessary for the action.• Either I or II: Neither is required.• Both: Even stronger and incorrect.


Common Pitfalls:
Equating potential motives (revenue, regulation) with specific pessimistic beliefs. Avoid reading more than what the decision minimally requires.


Final Answer:
Neither Assumption I nor II is implicit.

More Questions from Statement and Assumption

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion