Q210
Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer : Statement : Let us increase the taxes to cover the deficit. Assumptions : I. The present taxes are very low. II. Deficit in a budget is not desirable. III. If the taxes are not increased, the deficit cannot be met.
A.
Only I and II are implicit
B.
Only II and III are implicit
AnswerC.
Only I and III are implicit
D.
All are implicit
E.
None of these
Answer: Option B
Solution
Answer: Option B
Solution:
Clearly, the statement shows that the present taxes are not sufficient to meet the deficit but they may still be high. So, I is not implicit. Since the statement talks of covering the deficit, so II is implicit. Also, the taxes are increased to meet the deficit. So, III is also implicit.