LSAT 131 – Section 3 – Question 01

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PT131 S3 Q01
+LR
Resolve reconcile or explain +RRE
A
97%
164
B
1%
155
C
1%
153
D
0%
155
E
1%
157
122
131
141
+Easiest 146.026 +SubsectionMedium

New technologies that promise to extend life and decrease pain involve innovations that require extensive scientific research. Therefore, investment in such technologies is very risky, because innovations requiring extensive scientific research also require large amounts of capital but are unlikely to provide any financial return. Nonetheless, some people are willing to invest in these new technologies.

"Surprising" Phenomenon
Why do people invest in technologies that promise to extend life and decrease pain when those technologies are risky investments?

Objective
A hypothesis explaining this behavior will state a benefit to investors that makes the risk worthwhile. It must apply to a group of investments including those that promise to extend life and decrease pain.

A
When investments in new technologies that promise to extend life and decrease pain do provide financial return, they generally return many times the original investment, which is much more than the return on safer investments.
This explains why some investors take the risk. When such a technology does succeed, it brings a large financial benefit that makes the risk worthwhile.
B
A large variety of new technologies that promise to extend life and decrease pain have been developed in the last decade.
This does not explain why people invest in those technologies. It states that such technologies are numerous, not that they are generally successful.
C
The development of certain new technologies other than those that promise to extend life and decrease pain is also very risky, because these technologies require large amounts of capital but are unlikely to provide any financial return.
This does not state that most investments are risky, but rather identifies a new category of risky investments. Simply the existence of this category does not explain why the technologies in question attract investments.
D
Some investments that initially seem likely to provide reasonably large financial return ultimately provide no financial return.
It is not stated whether the technologies in question fit this description. It is possible that no technologies that promise to extend life and decrease pain seem likely to provide a large financial return.
E
The scientific research necessary to develop new technologies that promise to extend life and decrease pain sometimes leads to no greater understanding of the natural world.
This is irrelevant information. No relationship between the understanding of the natural world gained from research and the tendency of people to invest in that research is implied.

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