Correct Answer: (D)

1. Analysis of the Question: The inequality $x^3 > x^2$ is equivalent to $x^2(x - 1) > 0$. Since $x$ is a non-zero integer, $x^2$ is always positive. Thus, the question effectively asks: Is $x - 1 > 0$, or is $x > 1$?

2. Evaluating Statement (1): $x^2 > x$ implies $x^2 - x > 0$, which factors to $x(x - 1) > 0$. This is true if $x > 1$ or $x < 0$. If $x > 1$ (e.g., $x=2$), the answer to the question is "Yes". If $x < 0$ (e.g., $x=-1$), $x^3 = -1$ and $x^2 = 1$, so $x^3$ is not greater than $x^2$, and the answer is "No". Since we get both "Yes" and "No", (1) alone is not sufficient. Wait, let us re-examine: The question asks if $x > 1$. Statement (1) allows $x$ to be negative. However, if $x$ is a negative integer, $x^3$ is always less than $x^2$. Thus, we need to know if $x$ is positive or negative.

3. Evaluating Statement (2): $|x| > x$ is only true if $x$ is a negative number. If $x$ is negative, then $x^3$ (a negative number) is always less than $x^2$ (a positive number). Therefore, the answer to the question "Is $x^3 > x^2$?" is a definite "No". Since we get a consistent unique answer, (2) alone is sufficient.

4. Re-evaluating Statement (1) with Integer Constraint: For non-zero integers, $x^2 > x$ is true for all $x$ except $x=1$. If $x=2, 3, \dots$, $x^3 > x^2$. If $x=-1, -2, \dots$, $x^3 < x^2$. (1) remains insufficient.

5. Conclusion: Statement (2) provides a unique "No", making it sufficient. (1) provides both "Yes" and "No".

Test Prep Tip: In Data Sufficiency, a "No" is just as sufficient as a "Yes". The goal is to determine if the answer is unique. Always simplify the question stem first—converting $x^3 > x^2$ to $x > 1$ makes the logical paths much clearer.