New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    This question consists of a statement followed by two

    arguments I and II. Read the statement and the arguments carefully and select the most appropriate answer from the given options. Statement: Government of country X has decided to impose a ban on the export of wheat effective immediately. Arguments: I. Several states in the country X have reported a bumper crop of wheat this year causing a glut in the market. II. Many wholesalers have complained to the government regarding fears of excess stock of wheat that may start rotting if not used.
    A Both I and II weaken the statement Correct Answer Incorrect Answer
    B Both I and II strengthen the statement Correct Answer Incorrect Answer
    C I weakens while II strengthens the statement Correct Answer Incorrect Answer
    D II weakens while I strengthens the statement Correct Answer Incorrect Answer

    Solution

    Argument I: Several states in country X have reported a bumper crop of wheat this year causing a glut in the market. A glut (excess supply) generally supports exports rather than banning them — exporting would reduce the surplus. Therefore, this argument weakens the decision to ban exports. Argument II: Many wholesalers have complained to the government regarding fears of excess stock of wheat that may start rotting if not used. If the wheat is at risk of rotting due to oversupply, then allowing export could be a way to prevent waste. So, this argument also weakens the decision to ban exports.

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