Multiple choice

Directions: The question has a set of four sequentially ordered statements; each statement can be classified as one of the following: Facts, which deal with pieces of information that one has heard, seen or read, and which are pen the discovery or verification (the answer option indicates such a statements with an 'F') Inferences, which are conclusions drawn about the unknown, on the basis of the known (the answer option indicates such a statement with an 'I'). Judgments, which are opinions that imply approval or disapproval of persons, objects, situations, and occurrences in the past, the present, or the future (the answer option indicates such as statement with a 'J') Select the answer option that best describes the set of four statements.

  1. The cement industry, which has clocked annual growth of 8 percent, will increase capacity by 60 percent to 240 million tones by 2009-10. In the steel industry, SAIL and Essar Steel will add about 15 million tones of capacity by 2011.
  2. Increased capacities could be expected to arrest and even retard the rising prices but the economic experts such as Anil Singhri, M.D. of Gujrat Ambuja opine that the capacities cannot materialize overnight; prices will drop depending upon the global factors and the demand and supply equilibrium.
  3. The urbanization has resulted into the housing boom and the banks are also acting good players wooing the salaried people to own houses availing long term loans; the future demand potential of steel and cement is rising, thus surge in prices is inevitable.
  4. The government and the private sector plan to invest 350 million dollars on the country's infrastructure over the next five years and this will sustain and expand the current demand for cement; steel and other commodities for at least another 7-10 years.

  1. FFIF

  2. FIIF

  3. IFII

  4. IIJF

  5. IFJI

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement 1 infers future growth based on past growth rate; statement 2 refers to the opinion of the expert economists presented as a fact (news); statement 3 refers to the housing boom leading to surge in prices and is, therefore, inference based; statement 4 again is inference based as the demand potential is rising. Hence, IFII