Direction: In each question below is given a statement followed by two conclusions numbered I and II. You have to assume everything in the statement to be true, then consider the two conclusions together and decide which of them logically follows beyond a reasonable doubt from the information given in the statement. Give answer
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Statement:
The government will hike royalty on crude oil and grant exemption in excise duty to North-East petroleum production.
Conclusions :
I. There will be an additional burden on the national exchequer.
II. There is intense competition for petroleum production in the North-East.
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- if only conclusion I follows
- if only conclusion II follows
- if either I or II follows
- if neither I nor II follows, and
- if both I and II follow
Correct Option: A
Exemption in excise duty will have negative effect on national exchequer. Hence I follows. II is an inference to the contrary.
