Question 19

Below each question are given two statements I and II. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements.

I: The electricity bills for households have increased.

II: The government raised the tariffs for electricity consumption by 10%.

In this scenario, it can be inferred that the increase in electricity bills for households (Statement I) is caused by the government raising the tariffs for electricity consumption by 10% (Statement II). When the government increases the tariffs, the cost of electricity per unit consumed by households goes up. As a result, the electricity providers charge higher rates to the consumers, leading to an increase in electricity bills.

Thus, Statement I (increase in electricity bills) is the effect, and Statement II (government raising the tariffs) is the cause of this effect. Therefore, the correct answer is Option B.

Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 200+ previous papers with solutions PDF
  • Top 5000+ MBA exam Solved Questions for Free