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Correct Answer is A. Statement 1 alone is sufficient, while statement 2 is not.
It is an "Is" question. So, the answer has to be a definite YES or a definite NO. It cannot be a MAYBE.
Let us evaluate statement 1. Expanding both sides of the inequality, we get a^2 + b^2 + 2ab < a^2 + b^2 - 2ab Simplifying we get, 4ab < 0 or ab < 0. So, we can convincingly answer that ab is not positive. So, statement 1 is sufficient to answer the question.
The correct answer is either A or D.
Now let us evaluate the statement 2. This is actually the statement that could trick you. a = b. So, either both a and b or positive or both a and b are negative. In either case ab is positive. We will certainly be "tempted" to decide that statement 2 is also sufficient. The catch is that, both a and b could be 0. In that case ab = 0, which is not positive. As we are not able to conclude if ab is positive or not with statement 2, it is not sufficient.
So, choice A is the correct answer.
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