1. The literacy rate in the city is increasing for the last three years.
2. The city administration has conducted extensive literacy programs to educate the illiterate people of the city.

Which statement is the cause and which is the effect?
It is likely that 2) is the cause, and 1) is the effect. It's reasonable to assume that the literacy programs by the city administration have been successful in raising literacy rates in the city.

There is a possibility that 1) and 2) are not linked: for instance, the literacy programs might not have been successful, but literacy rates rose anyway due to other factors.
Can you give me some other examples of Cause and Effect questions?
Here are some additional examples of Cause and Effect questions:

• Why is there increased rainfall in the tropics? (Cause: Warm, moist air rises leading to precipitation. Effect: Increased rainfall in the tropics.)

• Why do people get sick after being out in cold, wet weather? (Cause: Exposure to cold, wet conditions. Effect: Higher likelihood of getting ill from viruses and bacteria.)

• How does deforestation lead to soil erosion? (Cause: Removal of trees leads to loss of roots that hold soil in place. Effect: Soil is more easily washed away by rain leading to erosion.)

• Why are coastal areas more prone to flooding during hurricanes? (Cause: Strong winds and low pressure cause storm surges that push ocean water inland. Effect: Coastal flooding and damage.)

• How does smoking cause lung cancer? (Cause: Exposure to carcinogens in cigarette smoke. Effect: Damage to cells in the lungs leading to cancerous tumors.)

Those are some additional examples of questions that are probing Cause and Effect relationships. In each case, there is some factor or action (the cause) that leads to a resulting consequence (the effect).