Question

Statement : Domestic demand has been increasing faster than the production of indigenous crude oil.
Conclusions :
I. Crude oil must be imported.
II. Domestic demand should be reduced.

• A. Only conclusion I follows
• B. Only conclusion II follows
• C. Either I or II follows
• D. Neither I nor II follows

Answer 1

The Correct Option is C

The statement indicates that domestic demand for crude oil is rising more rapidly than the local production capacity. From this, we have two possible conclusions to consider:

1. Crude oil must be imported. This conclusion suggests a potential solution to meet the demand-supply gap by importing oil from other countries.

2. Domestic demand should be reduced. This conclusion offers an alternative solution by suggesting that reducing domestic demand can balance the scales if increasing production is not feasible or timely.

Ultimately, either increasing the supply through imports or decreasing the demand can address the mismatch between demand and domestic production. Therefore, either conclusion I or II could logically follow.