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:
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:
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:
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.
Discussion & Comments