LIC AAO Model Paper 9

In this question is a statement followed by two courses of action numbered 1 and II. A course of action is a step or administrative decision to be taken for improvement, follow up or further action in regard to the problem, policy etc. On the basis ofinformation given in the statement, you have to assume everything in the statement to be true and then decide which of the suggested course of action logically follows for pursuing.
Statement: Railways of country Buroon is facing losses due to reductionin fare by various airlines in the country.
Course of actions :
I. Railways of country Buroon should improve the quality of rail journey with respect to facilities.
II. Number of schemes offering concessional fares should be restricted for airlines ofcountry Buroon.