Cause and Effect Questions and Answers

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Q1
Statement: The government increased taxes on luxury goods. Consequently, the sales of these goods declined significantly.
  • A The tax increase caused the decline in sales
  • B The decline in sales caused the tax increase
  • C Both are effects of a common cause
  • D The two events are unrelated
Answer: Option A
Explanation: Increase in taxes makes luxury goods more expensive, reducing demand and sales.
Q2
Statement: Regular exercise improves cardiovascular health. People who exercise regularly have lower risk of heart diseases.
  • A Exercise causes improved cardiovascular health
  • B Good cardiovascular health causes people to exercise
  • C Both are effects of healthy lifestyle
  • D No causal relationship exists
Answer: Option A
Explanation: Exercise strengthens heart muscles and improves circulation, directly reducing heart disease risk.
Q3
Statement: The company implemented new technology. Employee productivity increased by 30%.
  • A New technology implementation caused productivity increase
  • B Increased productivity caused technology implementation
  • C Both are results of management decisions
  • D The events are coincidental
Answer: Option A
Explanation: New technology typically streamlines processes and reduces manual work, leading to productivity gains.
Q4
Statement: Heavy rainfall occurred throughout the week. The river water level rose above danger mark.
  • A Heavy rainfall caused river water level to rise
  • B Rising river level caused heavy rainfall
  • C Both are effects of monsoon season
  • D No cause-effect relationship
Answer: Option A
Explanation: Heavy rainfall leads to increased water flow into rivers, causing water levels to rise.
Q5
Statement: The student studied diligently for six months. She scored highest marks in the final examination.
  • A Diligent study caused high scores
  • B High scoring ability caused diligent study
  • C Both are effects of intelligence
  • D The events are unrelated
Answer: Option A
Explanation: Consistent studying builds knowledge and exam preparedness, directly leading to better scores.
Q6
Statement: The company offered extensive training programs. Employee satisfaction ratings improved significantly.
  • A Training programs caused improved satisfaction
  • B High satisfaction caused training programs
  • C Both are effects of good HR policies
  • D No causal relationship exists
Answer: Option A
Explanation: Training enhances skills and career growth opportunities, leading to increased job satisfaction.
Q7
Statement: The central bank increased interest rates. Inflation rate started decreasing gradually.
  • A Interest rate hike caused inflation decrease
  • B Decreasing inflation caused interest rate hike
  • C Both are effects of monetary policy
  • D The events are coincidental
Answer: Option A
Explanation: Higher interest rates reduce borrowing and spending, which helps control inflation.
Q8
Statement: The city installed new street lights in all neighborhoods. Night-time crime rates dropped by 40%.
  • A Street lights installation caused crime reduction
  • B Crime reduction caused installation of street lights
  • C Both are effects of urban development
  • D No cause-effect relationship
Answer: Option A
Explanation: Better lighting increases visibility and deters criminal activities during night hours.
Q9
Statement: The farmer used high-quality seeds and modern farming techniques. Crop yield increased substantially.
  • A Improved inputs caused higher yield
  • B High yield caused use of better inputs
  • C Both are effects of agricultural reforms
  • D The events are unrelated
Answer: Option A
Explanation: Better seeds and techniques directly improve agricultural productivity and yield.
Q10
Statement: The restaurant hired a renowned chef. Customer footfall doubled within a month.
  • A Chef hiring caused increased customers
  • B Increased customers caused chef hiring
  • C Both are effects of restaurant marketing
  • D No causal relationship exists
Answer: Option A
Explanation: A famous chef attracts food enthusiasts and improves food quality, increasing restaurant popularity.
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