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Statement I: The government sharply increased the retail price of petrol and diesel. Statement II: The public-sector oil companies were incurring heavy losses because of high international crude-oil prices. Which of the following best describes the relationship between the two statements?

Competition practiceLogical / Critical
  • ABoth statements are effects of independent causes.
  • BStatement I is the cause and Statement II is its effect.
  • CBoth statements are independent causes.
  • DStatement II is the cause and Statement I is its effect.

Step-by-Step Solution

The heavy losses from costly crude oil (II) drove the government to raise fuel prices (I), so II is the cause and I is the effect.
Answer: D) Statement II is the cause and Statement I is its effect.

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