Question

Statement: The Government has decided to levy $2$ percent on the tax amount payable for funding drought relief programmes.
Assumptions:
I. The Government does not have sufficient money to fund drought relief programmes.
II. The amount collected by way of surcharge may be adequate to fund these drought relief programmes.

• A. Only assumption I is implicit
• B. Only assumption II is implicit
• C. Either I or II is implicit
• D. Neither I nor II is implicit
• E. Both I and II are implicit

Answer 1

The correct option is E Both I and II are implicit

Since a surcharge has been levied to fund drought relief programmes, it follows that the Government does not have sufficient money for the same. So, I is implicit. Besides, the percentage of surcharge must have been decided after studying the expected inflow in relation to amount of funds required. So, II is also implicit.