The government has increased the taxes on all businesses in Pakistan.Many small businesses will have to close their operation in Pakistan.
Correct answer: A. Statement I is the cause and Statement II is the effect.
- A. Statement I is the cause and Statement II is the effect.
- B. Statement II is the cause and Statement I is the effect.
- C. Both statements I and II are independent causes.
- D. Both the statement I and II are the effects of independent causes.
Explanation
Here by reading out the two statements, it's clear that because the government has increased taxes on all businesses in Pakistan (1), as a result, many small businesses will have to close their operation. Majorly because small businesses do not have capital large enough to pay increased taxes. Hence, Statement 2 here is the effect of Statement 1 i.e. the cause.
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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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