Multiple choice

Directions: In the following question, a statement is followed by two assumptions I and II. You are to consider the statement and the assumptions that follow and 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. Either assumption I or II is implicit

  3. Only assumption II is implicit

  4. Neither assumption I nor II is implicit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

1 is not implicit. It is assumed that people will pay taxes. That is why 2 is implicit. But the government does not necessarily assume that people will continue with these schemes.

Keep practicing — related questions