Statement: The salaries of private emplyees has nearly doublestion the past two years.
Courses of action: I. Higher income tax rate should be imposed on primary sector empolyees.
II. The wages of public sector employees should be double.
III. A further rise should not be allowed.

Options

A. Only I follows
B. Only II follows
C. Either I or II follows
D. None follows

Answer

D

Explanation

None follow. Why higher income tax rate? If they are earning more, they will automatically pay more taxes because taxes are proportional to income. Similarly, wages of public sector employees can.t be doubleed: there are many differences between a private sector employee and a public sector employee. The latter enjoys many hidden perks such as free medical facilities, free house, gratuity, etc. His working conditions may not be as tough as those of a private sector employee. Also, he has a greater security of job. Before raising his salary, these factors should also be borne in mind. III also does not follow because it is an irrational action and no causes have been given.