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Difficulty: Very hardStatement and Assumptions

Statement:
"To prevent artificial scarcity and price spikes during the upcoming festival season, the State Department of Food and Civil Supplies has ordered all licensed grain wholesalers to update their inventory holdings daily on the state e-governance portal, warning that non-compliance will result in immediate suspension of their storage permits."

Consider the following assumptions:
Assumption I: Mandatory digital inventory logging will assist the administration in detecting and curbing speculative hoarding of essential grains.
Assumption II: The market price of essential grains will fall significantly below the minimum support price once digital stock reporting commences.

Which of the above assumptions is/are implicit in the statement?

  1. Only assumption I is implicitAnswer
  2. B
    Only assumption II is implicit
  3. C
    Either assumption I or II is implicit
  4. D
    Neither assumption I nor II is implicit
  5. E
    Both assumptions I and II are implicit

Answer

Only assumption I is implicit.
The correct answer states that only assumption I is implicit. When an administrative body mandates digital inventory updates specifically to combat artificial scarcity, it takes for granted that such monitoring will effectively expose and curb speculative hoarding. Conversely, expecting market prices to crash below the minimum support price is an unwarranted exaggeration that is neither implied nor intended by a price-stabilization policy.

Step-by-Step Solution

1
Analyze the core premise and objective of the statement
The Department of Food and Civil Supplies issued a directive requiring daily digital stock reporting by grain wholesalers, citing the explicit objective of preventing artificial scarcity and price spikes under penalty of permit suspension.
An assumption is an unstated premise that the speaker must take for granted for the statement or action to be logical.
2
Evaluate Assumption I
Assumption I is implicit.
If digital reporting could not assist in tracking and preventing hoarding (which creates artificial scarcity), the department's directive would fail to serve its stated purpose. Therefore, the authority implicitly assumes that daily digital tracking will help identify and deter speculative hoarding.
3
Evaluate Assumption II
Assumption II is not implicit.
The policy aims to stabilize prices and curb artificial spikes, not to crash market prices below the Minimum Support Price (MSP). Expecting prices to drop below MSP is an ungrounded speculation and does not serve as a premise for issuing the circular.
4
Synthesize results
Only Assumption I is necessary for the statement to hold true.
Assumption I is logically implicit, while Assumption II is invalid.

Key Concept

Identifying Implicit Premises in Administrative Directives
Estimated Time:1m 30s
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Topics

Statement and Assumptions

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