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.
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: 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.
Final Answer Both are effects of independent causes