Given below are pairs of events (i) and (ii). You have to read them and decide their nature of relationship. You have to assume that the information given in both (i) and (ii) is true and not assume anything beyond the given information in deciding the answer.

Event (i) The prices of imported goods dropped significantly this year.

Event (ii) The government reduced the tax on importing goods.

Question

Question

This question was previously asked in

AAI ATC Junior Executive 21 Feb 2023 Shift 2 Official Paper

Answer 1

The relationship between event (i) and event (ii) appears to be one of cause and effect.

The reason is that reducing the tax on importing goods (Event ii) can logically lead to a drop in prices of imported goods (Event i).

This is because when import taxes are reduced, the cost of bringing goods into the country decreases, which likely allow importers to reduce the prices of their goods subsequently.
Hence, it can be inferred that event (ii) could have caused event (i). However, please note that the confirmation of causality cannot be made without additional information or data.

Hence, Event (i) is the effect and event (ii) is its immediate and principal cause.