Cause–Effect reasoning: Identify the most plausible causal relationship between the two statements. Statement I: Standard of living among the middle class is consistently rising in recent years. Statement II: The Indian economy is witnessing remarkable growth. 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: Statement II is the cause and Statement I is its effect
Explanation
Approach Economic growth typically drives higher incomes, employment, and consumption, which elevate the standard of living, especially for the middle class.
Reasoning It is more natural that a growing macroeconomy (Statement II) causes improvements in household welfare and purchasing power (Statement I) rather than the reverse.
Common pitfalls Assuming the reverse direction without macroeconomic justification.
Final Answer Statement II is the cause and Statement I is its effect