Question

Read the statements given below:
1. Exports were more than imports in 2006
2. Imports were more than exports in 2009
3. Exports increased at faster rate than imports during the period 2005 to 2010
Which of the above statements is necessarily true?

• A. 1 and 2
• B. 1, 2 and 3
• C. 3 only
• D. 2 only
• E. 1 only

Hint:

When data tables provide % change, remember these show relative growth, not absolute quantities. Be cautious in concluding comparisons unless base values are known.

Answer 1

The Correct Option is C

Step 1: Check Statement 1 (2006).
From the table: Imports growth = \(9.438%\), Exports growth = \(13.83%\). These are growth rates, not absolute values. Without knowing base values (2005 levels), we cannot conclude that exports exceeded imports. So Statement 1 is not necessarily true.
Step 2: Check Statement 2 (2009).
In 2009, Imports growth = \(8.321%\), Exports growth = \(0.813%\). Again, these are rates of change, not absolute values. So we cannot deduce imports \(>\) exports. Statement 2 is not necessarily true.
Step 3: Check Statement 3 (2005–2010).
Compare overall change: Exports growth rates over 2005–2010 sum higher than imports (Exports: \(18.88,13.83,17.13,10.63,0.813,21.86\); Imports: \(17.99,9.438,16.3,10.84,8.321,16.49\)). Exports consistently show stronger cumulative growth. Hence Exports increased at a faster rate than Imports over the period. So Statement 3 is true.
Therefore only Statement 3 is necessarily true.