Directions : Each of the following question consists of a statement followed by two arguments I and II. You have to decide which of the arguments is a STRONG arguments and which is a WEAK Argument. Statement : Should there be a ceiling on the salary of top executives of multinationals in our country? Arguments : I. Yes. Otherwise it would lead to unhealthy competition and our own industry would not be able to withstand that. II. No. With the accent on liberalization of economy, any such move would be counter-productive. Once the economy picks up, this disparity will be reduced.

The correct answer is: Only argument I is strong.

Argument I is strong because it provides a clear and specific reason why there should be a ceiling on the salary of top executives of multinationals. The argument states that, without a ceiling, there would be unhealthy competition among multinationals, which would lead to our own industry not being able to withstand it. This is a valid concern, as it is possible that multinationals would be willing to pay top executives exorbitant salaries in order to attract the best talent, which could put our own companies at a disadvantage.

Argument II is weak because it does not provide a clear and specific reason why there should not be a ceiling on the salary of top executives of multinationals. The argument states that, with the accent on liberalization of economy, any such move would be counter-productive. However, it is not clear why this would be the case. It is possible that liberalization of the economy could lead to increased competition among multinationals, which would in turn lead to lower salaries for top executives. However, it is also possible that liberalization of the economy could lead to increased demand for goods and services, which would in turn lead to higher salaries for top executives. Therefore, the argument does not provide a strong reason to believe that there should not be a ceiling on the salary of top executives of multinationals.