Statement : Banning all types of liquor is the best way to implement prohibition. Assumption I : Yes, by cutting the supply, people will stop drinking. Assumption II : No, it will lead to an increase in the production of illicit liquor and the use of drugs.

The correct answer is (D) Neither Assumption I nor II is implicit.

• Logical Principle: An assumption is something implicitly held by the author before making a statement. It must be a logical necessity for the statement to be valid. The statement expresses an opinion/argument regarding the effectiveness of a policy (prohibition).
• Step-by-step Deduction: Assumption I is a positive outcome prediction (a consequence), not a foundational premise held by the author. Assumption II is a counter-argument or a potential negative consequence, which is also not an underlying premise. Both represent speculative points of view or opinions regarding the policy, rather than logical assumptions required for the statement to be made.
• Verification: Since the statement presents a subjective proposal rather than a factual logical derivation, neither assertion can be identified as a pre-requisite assumption. Thus, both are logically external to the statement, making (D) the correct choice.