Question

In the question, a statement is given, followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions and decide which of the assumption(s) is/are implicit in the statement. Statement: The government has increased the tax rates on luxury goods. Assumptions: I. The government aims to generate additional revenue through higher taxes. II. People will reduce their consumption of luxury goods due to increased taxes

• A. If only Assumption I is implicit.
• B. If only Assumption II is implicit.
• C. If either Assumption I or II is implicit.
• D. If neither Assumption I nor II is implicit.

Answer 1

Answer: (A)

If only Assumption I is implicit.

Answer 2

The correct option is (A): If only Assumption I is implicit.