Question

Directions: In each question below is given a statement followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statements and the following assumption and decide which of the assumption(s) is / are implicit in the statement. Give answer.

Statement:

The Government has decided against reduction of prices of petroleum products though there is a significant drop in the crude oil prices in the international market.

Assumptions:

 I. The prices of crude oil in the international market may again increase in the near future

II. The present price difference of petroleum products will help the government to with stand any possible price rise in future. 

1. Only Assumption I is implicit 
2. Only Assumption II is implicit 
3. Either Assumption I or II is implicit 
4.

Neither Assumption I nor II is implicit 

5.

Both Assumption I and II are implicit 

Answer 1

Correct Answer - Option 4 :

Neither Assumption I nor II is implicit 

It is not necessary that the price rise be three in the mind of Government while taking the decision. Infact the truth is that our petroleum companies are running losses even after the drop in international price. Hence, both are invalid assumptions.

Hence, neither Assumption I nor II is implicit.