Direction: In each question, there are two statements which can be combined in to a single statement in a number of different ways without changing their meaning. Below are given three probable starters (A), (B) and (C) of such a combined sentence. One, two, three or none of them may be correct. Decide upon which is/are correct, if any, and mark the option which denotes your answer. If none of the three starters is suitable mark ‘None of A, B and C’ as your answer. e . I. The current method of measuring gross fixed capital formation is regularly used as a proxy for investment activity. II. Gross fixed capital formation needs more scrutiny and is heavily swayed by a single factor-the price of steel. (B) The method of measuring ww (A) Gross fixed capital formation is (C) The price of steel

Explanation

"Gross fixed capital formation is a current method which is regularly used as a proxy for investment activity and needs more scrutiny as it is heavily swayed by a single factor—the price of steel." The beginning of the sentence "Gross fixed capital formation is a current method" is incorrect because gross fixed capital formation is a measure, not a method. The statement incorrectly equates the two. "The method of measuring gross fixed capital formation is used as a proxy for investment activity and it needs to be scrutinized more because it is heavily swayed by a single factor—the price of steel." -> Correct "The price of steel is the single factor that influences the current method of measuring gross fixed capital formation, which is regularly used as a proxy for investment activity and thus needs to be scrutinized more." ix This option starts by focusing on "the price of steel," which changes the focus of the combined sentence. While it correctly w . conveys that the price of steel is an influencing factor, the structure makes the primary idea—the method of measuring gross fixed capital formation—seem secondary. The balance between the two original statements is lost, and this phrasing doesn't emphasize the method itself as clearly as the other options.