Multiple choice

Directions: In the given question, a statement is followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions to decide which of the assumptions is/are implicit in the statement.

Statement: The Union Government has decided to withdraw existing tax relief on various small savings schemes in a phased manner to augment its tax collection. Assumptions: I. People may still continue to keep money in small savings schemes and also pay taxes. II. The total tax collection may increase substantially.

  1. Only assumption I is implicit.

  2. Only assumption II is implicit.

  3. Either assumption I or II is implicit.

  4. Neither assumption I nor II is implicit.

  5. Both assumptions I and II are implicit.

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

Assumption I is not implicit. It is assumed that people will pay taxes. That is why II is implicit. But the government does not necessarily assume that people will continue with these schemes. It may discourage people to continue with these schemes.

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