Read the following statements and answer the question. (1) Finally, the government has decided to sell off its sick industrial units, which have become a burden to it. (2) Corruption, inefficiency, and red-tapism have led to heavy losses to the government-owned industrial units. Which of the following is true with respect to the above statements?

Statement I is the cause and Statement II is its effect
Statement II is the cause and Statement I is its effect
Both Statement I and II are independent causes
Both statements I and II are effects of independent causes

Correct answer: Statement II is the cause and Statement I is its effect

Solution

Statement II gives the reasons for the losses in government-owned industrial units. Statement I describes the government's decision taken because of those losses, so II is the cause and I is the effect.

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