Statement: The government has increased taxes on luxury cars to boost revenue. Conclusions: I. Luxury cars will become more expensive for buyers. II. Revenue of the government will definitely increase. Which conclusion(s) logically follow? MCQ with Answer and Explanation

Statement:
The government has increased taxes on luxury cars to boost revenue.
Conclusions:
I. Luxury cars will become more expensive for buyers.
II. Revenue of the government will definitely increase.
Which conclusion(s) logically follow?
A. Only conclusion II follows
B. Both I and II follow
C. Neither I nor II follows
D. Only conclusion I follows
Answer: Option D
Solution (By JKSSB Mock Tests)
Increasing taxes on a product directly increases its final cost to the buyer, so I follows. However, an increase in tax does not guarantee an increase in overall revenue, as sales volume might drop significantly. Therefore, II is not a definite conclusion.

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Practice More Statement and Conclusion Questions

Question #1
Statement: The classroom has a capacity of 40 students. Conclusions: I. There are exactly 40 students enrolled. II. The room cannot accommodate more than 40 students.
A. Only I follows
B. Neither I nor II follows
C. Both I and II follow
D. Only II follows

Correct Answer: Option D


Explanation:
Capacity means maximum limit, so II follows. I does not; actual enrolment can be less.

This question belongs to: Reasoning Statement and Conclusion
Question #2
Statements:
1. All A are B.
2. Some A are C.
Conclusions:
I. Some B are C.
II. Some C are A.
Which conclusion(s) logically follow?
A. Neither I nor II follows
B. Only conclusion II follows
C. Both I and II follow
D. Only conclusion I follows

Correct Answer: Option C


Explanation:
Since some A are C, and all A are inside B, the intersection of A and C must also be inside B, meaning some B are C (I). 'Some A are C' directly implies its reverse 'Some C are A' (II). Both follow.

This question belongs to: Reasoning Statement and Conclusion
Question #3
Statement: The traffic signal turned green. Conclusions: I. Vehicles may start moving. II. Pedestrians should not cross.
A. Neither I nor II follows
B. Both I and II follow
C. Only I follows
D. Only II follows

Correct Answer: Option C


Explanation:
Green signal means go for vehicles (I). Pedestrians may still cross at zebra crossing; no explicit rule given. So II does not follow.

This question belongs to: Reasoning Statement and Conclusion