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Discussion

Statements: Domestic demand has been increasing faster than the production of indigenous crude oil.

Conclusions:

1. Crude oil must be imported.

2. Domestic demand should be reduced

  • A.Only conclusion I follows
  • B.Only conclusion II follows
  • C.Either I or II follows
  • D.Neither I nor II follows
  • E.Both I and II follow

Answer: C

Correct answer: Either I or II follows

Demand is outrunning what the country produces, and a gap of that kind can be closed in only one of two ways - buy the difference from abroad, or bring demand down. One or the other must happen, but the statement does not say which. Either I or II follows.

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