[Solved] Statement: "The government will provide grants to renewable energy startups to boost clean energy production."Assumptions:1️⃣ Consumers already prefer renewable energy to fossil fuels.... | Reasoning Ability

Reasoning Ability - Statement & Assumption

Statement: "The government will provide grants to renewable energy startups to boost clean energy production."
Assumptions:
1️⃣ Consumers already prefer renewable energy to fossil fuels.
2️⃣ Grants will help startups scale and increase clean energy output.
Which assumption(s) is/are implicit?

AOnly 1

BOnly 2

CBoth 1 and 2

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Understand the policy aim
The policy targets supply-side growth in clean energy by funding startups.
Step 2: Test assumptions
Assumption 1 — that consumer preference already favors renewables — is not necessary for a supply-side push (demand can be created later). Assumption 2 — that grants will enable startups to scale and thus increase output — is the direct premise behind offering grants.
Final Answer:
Only 2 is implicit. → Option B
Quick Check:
The action presumes grants will be effective; it does not assume existing strong consumer demand ✅

Quick Trick: Supply-side incentives usually assume the remedy (funding) will work rather than pre-existing demand.

Common Mistakes:

Confusing a policy’s intended effect with assumptions about current market preferences.

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Which assumption(s) is/are implicit?

Step 1: Understand the policy aim

Step 2: Test assumptions

Final Answer:

Quick Check:

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