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      Question

      Statement: Due to a sharp increase in fuel

      prices, the government has decided to reduce excise duty to provide relief to the common people. Assumptions: I. Increase in fuel prices affects the financial burden of common people. II. The government has enough flexibility in its budget to reduce excise duty.
      A If only assumption I is implicit Correct Answer Incorrect Answer
      B If only assumption II is implicit Correct Answer Incorrect Answer
      C If either I or II is implicit Correct Answer Incorrect Answer
      D If neither I nor II is implicit Correct Answer Incorrect Answer
      E If both I and II are implicit Correct Answer Incorrect Answer

      Solution

      Assumption I is implicit. The statement clearly mentions that excise duty is being reduced to provide relief to the common people, which implies that rising fuel prices are indeed burdening them. Assumption II is not necessarily implicit. The statement tells us that the government has decided to reduce excise duty, but it does not tell us whether the government has the flexibility to do so — the action may have been taken despite financial constraints.

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