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    Question

    In each question below is given a statement followed

    by two courses of action numbered I and II. You have to assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the suggested courses of action logically follow(s) for pursuing.   Statement: The city’s public bus service has been reporting heavy losses for the past five years due to rising fuel costs and declining ridership. Courses of Action: I. The bus service should introduce discounted monthly passes to encourage more commuters to use public transport. II. The government should immediately provide a large financial bailout to cover all accumulated losses.
    A Only I follows Correct Answer Incorrect Answer
    B Only II follows Correct Answer Incorrect Answer
    C Neither I nor II follows Correct Answer Incorrect Answer
    D Both I and II follow Correct Answer Incorrect Answer

    Solution

    Since the losses are due to declining ridership, taking action to increase the number of passengers is logical. Offering discounted monthly passes could help attract more commuters → Course I follows. A full financial bailout (Course II) merely covers losses without solving the underlying problems such as falling ridership. Hence, it is not a justified course of action. Therefore, Only Course of Action I follows.

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