Question

Statement: The government has increased the tax on cigarettes by 25 percent in order to discourage smoking. Conclusions: I. Higher prices may reduce cigarette consumption. II. The government intends to reduce smoking among citizens.

• A. Only conclusion I follows
• B. Only conclusion II follows
• C. Neither conclusion follows
• D. Both conclusions I and II follow

Hint:

Break the statement into the action taken and the stated purpose behind it, then check which conclusion each part supports.

Answer 1

The Correct Option is D

Step 1: Split the statement into two parts: (a) the action taken - raising cigarette tax by 25 percent, and (b) the stated purpose behind it - to discourage smoking.
Step 2: Test conclusion I against part (a): raising prices to reduce consumption relies on the well-accepted principle that demand falls as price rises. This is a reasonable, moderate inference from the action taken, so I follows.
Step 3: Test conclusion II against part (b): the phrase "in order to discourage smoking" is the government's own stated purpose. Concluding that the government intends to reduce smoking is essentially a restatement of this explicit purpose, so II certainly follows.
Step 4: Since I is supported by the logic of the action and II is a direct restatement of the stated purpose, both conclusions follow.
Correct option: (4) Both conclusions I and II follow.