Statement: The demand for automobiles has slumped indicating a possible recession in the automobile sector.
Courses of action: I. The government should announce tax reliefs to the automobile sector.
II. The automobile sectore should reduce the prices of the products.
III. The industrialists should look for some better business ventures than automobiles.

Options

A. I and II follow
B. II and III follow
C. I and III follow
D. Only I follows

Answer

A

Explanation

I and II are proper courses of action because both of these are time-tested .treatments. for recession. III does not follow because it promotes escapism. Recession is an integral part of usiness and all businesses are cyclic in nature. It makes no sense to abandon a business simply because its demand has slumped.