Logical Reasoning Cause and Effect Analysis UHS 2024
PMDC Verified Question 8 of 17
Statement 1: The government has increased the taxes on all businesses in Pakistan.
Statement 2: Many small businesses will have to close their operations in Pakistan.
A
Statement I is the cause and Statement II is the effect.
B
Statement II is the cause and Statement I is the effect.
C
Both statements I and II are independent causes.
D
Both statements I and II are effects of independent causes.
Tap any option to test your recall and reveal the step-by-step Propolis autopsy.

Propolis Cognitive Error Autopsy

Official Correct Choice:
Option A: Statement I is the cause and Statement II is the effect.
Concept: Fiscal Policy Effects.

Formula: N/A

Solution: Broad tax hikes (Cause) lead to profit contraction, causing operational insolvency in small businesses (Effect).

Why other options are incorrect:

• Option B: Inverts policy causality.

Quality & Fidelity Assurance: Every question on BeambePrep is rigorously curated against the official PMDC syllabus with zero filler, zero out-of-syllabus content, and zero typos. When an authentic past paper originally contained a historical mistake or ambiguity from the examining board (such as UHS or NUMS), BeambePrep faithfully reflects the original paper while detailing the nuance and scientific consensus in the autopsy above.

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