Discussion
Statement: The State Government has unilaterally increased by five percent octroi on all commodities entering into the state without seeking approval of the Central Government.
Assumptions:
1. The State Government may be able to implement its decision.
2. The Central Government may agree to support the State Government's decision.
3. The State Government may be able to earn considerable amount through the additional octroi
Answer: C
Since the State Government has increased the octroi, so I is implicit. Since the decision has been taken without the approval of the Central Government, it implies that Central Government would not confront the new policy. So, II is implicit. Since octroi is collected by the state on all commodities entering the state, so III is also implicit.
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