based on direct cause & effect Detailed Explanation And More Example

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The following question based on cause and effect topic of verbal reasoning

Questions : Cause: The cement manufacturing companies have increased the price of cement by about fifteen per cent with immediate effect.
Which of the following is/are possible effect(s) of the above cause?
  1. Govt will direct the cement manufacturing companies to reduce the price increase to five per cent.
  2. The prices of residential flats and commercial companies will see an upward trend.
  3. The construction companies may stop all ongoing construction projects with immediate effect.

(a) Only (B)

(b) Only (A)

(c) Only (C)

(d) Only (B) and (C)

e) None of these

The correct answers to the above question in:

Answer: (a)

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Read more based on direct cause effect Based Verbal Reasoning Questions and Answers

Question : 1

Cause: A severe cyclonic storm swept away most part of the state during the last two days.
Which of the following cannot be a possible effect of the above cause ?

a) Heavy rainfall was reported in most part of the state during the last two days.

b) Many people were rendered homeless as their houses were flown away.

c) The communication system of the state was severely affected and continues to be out of gear.

d) Govt has ordered that all the offices and schools should be kept open.

e) All are possible effects.

Answer: (d)

In such a cataclysmic scenario, the govt is likely to order the closure of offices and schools.

Question : 2

Effect : Majority of the employees of the ailing organisation opted for voluntary retirement scheme and left the organisation with all their retirement benefits within a fortnight of launching the scheme.
Which of the following can be a probable cause of the above effect ?

a) The company has been making huge losses for the past five years and is unable to pay salary to its employees in time.

b) The management of the company made huge personal gains through unlawful activities.

c) One of the competitors of the company went bankrupt last year.

d) The company owns large tracts of land in the state which will fetch huge sum to its owners.

e) None of these

Answer: (a)

The effect is a win-win solution to this cause.

Question : 3

Effect: This year majority of the final year students of the management institute have opted for finance speciali- sation.
Which of the following can be a probable cause of the above effect?

a) Last year most of the students with HR specialisation got better job offers than other specialisations.

b) The management institute offers only finance specialization to its final year students.

c) Last year the students with finance specialisation bagged most of the lucrative offers vis-a-vis students with other specializations.

d) The management institute has recently started its finance specialisation in addition to Marketing and HR being offered earlier.

e) None of these

Answer: (c)

Question : 4

Effect: Govt has allowed all the airlines to charge additional amount as peak time congestion charges for the flights landing between 6.00 a.m. and 10.00 a.m.
Which of the following is a probable cause of the above effect?

a) All the airline companies had threatened to suspend their services during peak hours.

b) The Govt has increased its tax for peak time flights.

c) The aircrafts are routinely put on hold over the airports while landing during peak time, causing extra fuel consumption.

d) The airline companies can now charge unlimited additional charge for peak time flights.

e) None of these

Answer: (c)

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