Question

Two statements are given. Identify the cause–effect} relationship, if any. I. The prices of petrol and diesel in the domestic market have remained unchanged for the past few months.
II. The crude oil prices in the international market have gone up substantially in the last few months.

• 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 I and II are independent causes
• D. Both the statements I and II are effects of independent causes

Hint:

When one statement describes a global market movement and the other a domestic policy outcome, treat them as effects of distinct causes unless a direct, natural causation matches the direction and magnitude.

Answer 1

The Correct Option is D

Step 1: Test I $$ II (I as cause).
Domestic fuel prices staying unchanged} cannot cause} international crude prices to rise. Global crude prices are driven by worldwide supply–demand/geopolitics, not by one country’s retail price level. $$ (A) is untenable.
Step 2: Test II $$ I (II as cause).
If international crude rises substantially}, the natural effect is an increase} in domestic fuel prices, not “unchanged”. The observed stability is more plausibly due to government price control/subsidy/hedging. Hence II does not} cause I directly. $$ (B) fails.
Step 3: Decide between (C) and (D).
- Statement II (global crude up) is an effect} of its own independent causes (OPEC decisions, wars, demand spikes, etc.).
- Statement I (domestic prices unchanged) is also an effect} of a different independent cause (policy decision, subsidy cushion, price freeze).
Thus both are effects} of different causes, not causes themselves. $$ (D).
\[ \boxed{\text{(D) Both I and II are effects of independent causes}} \]