Question

In the following question, two statements numbered I and II are given. There may be cause and effect relationship between two statements. These two statements may be the effect of same cause or independent causes. These statements may be independent causes without having any relationship. Read both the statements and mark your answer accordingly.
Statement I: Import duty on finished products is lower than duty rates on domestic procurement of raw materials.
Statement II: Inverted duty structure makes the domestic industries highly non-competitive vis-à-vis foreign companies.

• A. Statement I is the cause and statement II is its effect
• B. Statement II is the cause and statement I is its effect
• C. Both statement I and statement II are independent causes
• D. Both statement I and II are effect of independent causes

Answer 1

The Correct Option is A

The correct answer is (A): Statement I is the cause and statement II is its effect