Question

Statements: I. The government has imported large quantities of rice as per trade contracts with other countries. 
Statements:II. The prices of rice reduced sharply in the domestic market in recent months. Which of the following is the correct relationship between the two statements?

• 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 the statements are effects of independent causes
• D. Both the statements are independent causes

Answer 1

The Correct Option is A

The government importing large quantities of rice (statement I) can lead to a reduction in the prices of rice in the domestic market (statement II), as increased supply generally leads to lower prices. 
Therefore, statement I is the cause, and statement II is the effect. 
In cause and effect problems, look for a logical flow from one statement to the other, where one event directly leads to the other.