Moderate

Statement I: More citizens began using e-wallets. Statement II: The government announced cashback incentives for digital payments.

Correct answer: B. II is the cause and I is its effect.

  • A. I is the cause and II is its effect.
  • B. II is the cause and I is its effect.
  • C. Both are effects of a common cause.
  • D. Both are unrelated.

Explanation

Statement II, 'The government announced cashback incentives for digital payments,' is likely the cause, and Statement I, 'More citizens began using e-wallets,' is the effect. Cashback incentives are designed to encourage users to adopt certain behaviors, such as using digital payments. Therefore, the introduction of these incentives would logically lead to an increase in the usage of e-wallets. Other options are less plausible because they either reverse the cause-effect relationship or suggest no relationship at all, which contradicts the logical impact incentives have on consumer behavior.

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About Cause and Effect

Cause and effect questions examine whether one event produces another, whether both arise from a common factor, or whether their connection is only coincidental. They involve identifying preceding and resulting events, separating correlation from causation, and judging whether the stated evidence supports a direct, possible or unlikely relationship.

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