Question

Statement: The government has decided to reduce custom duty on computers.
Assumption I: The government wants to make computers accessible to a larger number of people
Assumption II: Prices in the domestic market may go up in near future

• A. Only assumption I is implicit
• B. Only assumption II is implicit
• C. Both assumption I and II are implicit
• D. Neither of the assumptions I and II is implicit

Hint:

Tax/duty reductions are usually assumed to make products cheaper and accessible, not to raise prices.

Answer 1

The Correct Option is A

Step 1: Understanding the statement — Lowering custom duty reduces the cost of imported computers.
Step 2: Assumption I check — Yes, making computers cheaper is aimed at increasing accessibility for more people.
Step 3: Assumption II check — No, reducing custom duty would likely lower prices, not raise them.
Step 4: Conclusion — Only assumption I is implicit.