Analytical reasoning on unemployment and job applications: Assess Statements I and II — 'There is an unprecedented year-on-year rise in the number of young unemployed' and 'A bank's manager post advertisement drew a very large number of applications' — to identify whether one is the cause and the other its effect or another 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 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: Unprecedented increase in young unemployed compared to the previous year.
- II: Very large number of applications to a bank's manager post.
Concept/Approach
Higher unemployment typically increases applicant pools for available jobs. We test direct causality from I → II.
Step-by-step evaluation
1) If more young people are unemployed, competition for advertised jobs intensifies.2) This leads to a surge in applications for each vacancy.3) Hence, Statement I (cause) reasonably explains Statement II (effect).Verification/Alternative
Reverse causation (II → I) is implausible; one ad cannot cause macro unemployment to spike.
Common pitfalls
- Confusing correlation with causation in the opposite direction.
Final AnswerStatement I is the cause and statement II is its effect.