Socioeconomic inference: High-income locality composition vs. higher supermarket sales — establish the proper cause–effect classification with justification.
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 the statements I and II are independent causes
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DBoth the statements I and II are effects of independent causes
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EBoth the statements I and II are effects of some common cause
Answer
Correct Answer: Statement I is the cause and statement II is its effect
Explanation
Given data
- I: Most citizens in the locality belong to higher income groups.
- II: The local supermarket's sales are much higher than those in other localities.
Concept/Approach
- Higher disposable income typically increases retail spending, boosting sales.
Step-by-Step reasoning1) Higher-income composition (I) → greater purchasing power.2) Greater purchasing power → higher supermarket sales (II).
Verification/Alternative
- Reverse causality (II → I) is implausible: high sales do not convert residents into a higher-income group.
Common pitfalls
- Attributing sales differences solely to store quality without considering customer income mix.
Final AnswerStatement I is the cause and statement II is its effect.