Exercise: Statement And Assumption

Questions for: Statement And Assumption

Statement: The government has decided to disinvest large chunk of its equity in select public sector undertakings for a better fiscal management.

Assumptions:

  1. The amount generated out of the disinvestment process may reduce substantially the mounting fiscal deficits.
  2. There will be enough demand in the market for the shares of these undertakings.

A:
Only assumption I is implicit
B:
Only assumption II is implicit
C:
Either I or II is implicit
D:
Neither I nor II is implicit
Answer: A
The fact given in I directly follows from the phrase '..... for a better fiscal management' in the statement. So, I is implicit. However, the public response to the new policy cannot be ascertained. So, II is not implicit.

Statement: It will be a substantial achievement in the field of education if one provides one school for every village in our country and enforce attendance.

Assumptions:

  1. Children in villages do not attend school regularly.
  2. Providing school to every village is desirable.

A:
Only assumption I is implicit
B:
Only assumption II is implicit
C:
Either I or II is implicit
D:
Neither I nor II is implicit
Answer: E
The statement lays stress on enforcing attendance. This implies that children in villages do not attend school regularly. So, I is implicit. Besides, the statement calls 'one school for every village' a 'substantial achievement'. So, II is also implicit.

Statement: Detergents should be used to clean clothes.

Assumptions:

  1. Detergents form more lather.
  2. Detergents help to dislodge grease and dirt.

A:
Only assumption I is implicit
B:
Only assumption II is implicit
C:
Either I or II is implicit
D:
Neither I nor II is implicit
Answer: B
Nothing is mentioned about lather formation by the detergent. So, I is not implicit. Also, detergents should be used as they clean clothes better and more easily. So, II is implicit.

Statement: The Government has decided to levy 2 percent on the tax amount payable for funding drought relief programmes.

Assumptions:

  1. The Government does not have sufficient money to fund drought relief programmes.
  2. The amount collected by way of surcharge may be adequate to fund these drought relief programmes.

A:
Only assumption I is implicit
B:
Only assumption II is implicit
C:
Either I or II is implicit
D:
Neither I nor II is implicit
Answer: E
Since a surcharge has been levied to fund drought relief programmes, it follows that the Government does not have sufficient money for the same. So, I is implicit. Besides, the percentage of surcharge must have been decided after studying the expected inflow in relation to amount of funds required. So, II is also implicit.

Statement: "The bridge was built at the cost of Rs. 128 crores and even civil bus service is not utilizing it, what a pity to see it grossly underutilized." - A citizen's view on a new flyover linking east and west sides of a suburb.

Assumptions:

  1. The building of such bridges does not serve any public objective.
  2. There has to be some accountability and utility of money spent on public projects.

A:
Only assumption I is implicit
B:
Only assumption II is implicit
C:
Either I or II is implicit
D:
Neither I nor II is implicit
Answer: B
Clearly, the statement expresses grave concern over a newly-built flyover not being utilized by public. This implies that such projects need to be taken up only after working out their utility and that the huge expenditure incurred on building such structures is worthwhile only if they prove useful for the public. Thus, only II is implicit.
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