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      Question

      In the question below, two statements (I) and (II) are

      given. 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 choices correctly depicts the relationship between these two statements. I. Several smartphone manufacturers in Asia have begun stockpiling rare earth metals used in battery production and high-performance chips. II. A major geopolitical standoff between two leading rare earth exporting countries has raised concerns about potential export restrictions on key raw materials. What is the correct relationship between the two statements?
      A Statement I is the cause and statement II is its effect Correct Answer Incorrect Answer
      B Statement II is the cause and statement I is its effect Correct Answer Incorrect Answer
      C Both the statements I and II are independent causes Correct Answer Incorrect Answer
      D Both the statements I and II are effects of independent causes Correct Answer Incorrect Answer
      E Both the statements I and II are effects of some common cause Correct Answer Incorrect Answer

      Solution

      Statement II discusses a geopolitical standoff between two countries that are major exporters of rare earth materials. Due to concerns about potential export restrictions stemming from this conflict, smartphone manufacturers have begun stockpiling those critical materials (Statement I). Thus, the fear of supply chain disruption caused by the standoff (Statement II) has led to the precautionary behaviour of stockpiling by manufacturers (Statement I). So, Statement II is the cause, and Statement I is its effect.

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