Discussion
Statement:
The government may reduce the export duty on Basmati rice, in view of competition from Pakistan in the international market.
Assumptions:
I. Reduction in export duty leads to increase in exports.
II. Pakistan is an exporter of Basmati rice.
Answer: A
Here there is a competition in the market. To be a forerunner in the competition in exports one has to increase its exports. As government has reduced export duty under the assumption that the reduction in export duty will definitely help in increase in export quantity, hence, I is implicit.
II is a conclusion, that can be drawn from the statement but is not an assumption.
Only I is implicit.
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