Cause and Effect Questions for Placement 2026 (with Answers)

Last Updated: March 2026

Cause and Effect questions test your ability to identify relationships between events and determine which event caused another. These questions are common in placement exams conducted by TCS, Infosys, Wipro, Cognizant, Accenture, HCL, Tech Mahindra, and Capgemini.

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Understanding Cause and Effect

Types of Relationships

Relationship	Description	Example
Direct Cause	One event directly produces another	Studying hard → Good grades
Indirect Cause	Multiple steps between cause and effect	Pollution → Global warming → Rising sea levels
Contributing Factor	Partial cause among many	Poor diet contributes to health problems
Immediate Cause	The trigger that directly precedes an event	Lightning strike causes fire
Root Cause	The underlying fundamental reason	Lack of maintenance causes machine failure

Common Traps

Trap	Description	Example
Correlation ≠ Causation	Two things happen together but don't cause each other	Ice cream sales and drowning both increase in summer
Reverse Causation	Effect is actually the cause	Does depression cause loneliness or vice versa?
Third Variable	Another factor causes both	Smoking causes both yellow fingers and lung cancer
Coincidence	No actual relationship	Full moon and hospital admissions

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25 Practice Questions with Detailed Answers

Question 1

Statement I: The government increased taxes on imported goods. Statement II: The prices of imported products have risen.

Options: A) I is the cause and II is the effect B) II is the cause and I is the effect C) Both are independent causes D) Both are effects of independent causes

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Question 2

Statement I: The company announced mass layoffs. Statement II: The company's stock price fell sharply.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects of independent causes

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Question 3

Statement I: Rahul scored 95% in his exams. Statement II: Rahul studied 8 hours daily.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 4

Statement I: The city received record rainfall. Statement II: Many areas of the city were flooded.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 5

Statement I: The restaurant introduced a new menu. Statement II: Customer complaints increased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 6

Statement I: The software was released with bugs. Statement II: Users reported frequent crashes.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 7

Statement I: The employee received a promotion. Statement II: The employee completed an advanced certification.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 8

Statement I: The price of crude oil increased globally. Statement II: Airline ticket prices increased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 9

Statement I: The athlete trained intensely for 6 months. Statement II: The athlete won the championship.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 10

Statement I: The smartphone battery drains quickly. Statement II: The phone has many background apps running.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 11

Statement I: The teacher explained concepts clearly. Statement II: Students scored well on the test.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 12

Statement I: The bridge was closed for repairs. Statement II: Traffic congestion increased on alternative routes.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 13

Statement I: The company invested in employee training. Statement II: Employee productivity improved.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 14

Statement I: The movie received excellent reviews. Statement II: The movie's box office collection increased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 15

Statement I: The plant was not watered for two weeks. Statement II: The plant's leaves turned yellow and wilted.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 16

Statement I: Internet connectivity improved in rural areas. Statement II: Online education enrollment increased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 17

Statement I: The startup secured venture capital funding. Statement II: The startup expanded to three new cities.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 18

Statement I: The team practiced daily for three months. Statement II: The team won the tournament.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 19

Statement I: The bank reduced interest rates. Statement II: Home loan applications increased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 20

Statement I: The factory installed pollution control equipment. Statement II: Air quality in the area improved.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 21

Statement I: The author published a bestselling book. Statement II: The author's social media following grew rapidly.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 22

Statement I: The highway speed limit was reduced. Statement II: Accident rates on the highway decreased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 23

Statement I: The software company hired UX designers. Statement II: User satisfaction ratings improved.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 24

Statement I: The city implemented a recycling program. Statement II: Waste sent to landfills decreased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Question 25

Statement I: The hospital implemented electronic health records. Statement II: Medical errors due to illegible handwriting decreased.

Options: A) I is cause, II is effect B) II is cause, I is effect C) Both are independent D) Both are effects

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Tricks to Solve Cause and Effect Questions

1. Check Time Sequence

• Cause always precedes effect in time
• If one event clearly happened first, it's likely the cause

2. Look for Direct Relationships

• Strong cause-effect relationships are usually direct
• Multiple steps suggest independent causes

3. Consider Common Sense

• Use general knowledge about how the world works
• Scientific, economic, and social principles help identify causation

4. Eliminate Impossible Options

• Effect cannot precede cause
• Independent causes don't influence each other

5. Watch for Third Variables

• Could something else cause both events?
• Economic conditions, weather, policy changes often affect multiple areas

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Common Cause-Effect Patterns

Domain	Typical Cause	Typical Effect
Economics	Price increase	Demand decrease
Weather	Heavy rainfall	Flooding
Health	Poor diet	Health issues
Technology	Buggy code	System crashes
Education	Quality teaching	Better scores
Business	Investment	Growth
Environment	Pollution	Health/Climate issues

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FAQs

Q1: How many cause-effect questions appear in placement exams?

A: Usually 3-5 questions in the logical reasoning section.

Q2: What is the difficulty level?

A: Generally moderate. Some questions test understanding of complex relationships.

Q3: How to distinguish cause-effect from correlation?

A: Ask: Does A necessarily lead to B? Is there a logical mechanism? Could something else explain both?

Q4: Can there be multiple causes for one effect?

A: Yes, many effects have multiple contributing causes. Choose the most direct or primary cause.

Q5: Should I use outside knowledge?

A: Use general common sense and widely accepted facts. Don't bring specialized or controversial knowledge.

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Practice identifying cause-effect relationships in daily life. It builds intuition for these questions!