LSAT 141 – Section 2 – Question 23

LSAT 141 - Section 2 - Question 23

September 2014

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Question
QuickView		 Type Tags Answer
Choices		 Curve Question
Difficulty		 Psg/Game/S
Difficulty		 Explanation
PT141 S2 Q23
+LR
Most strongly supported +MSS
Conditional Reasoning +CondR
A
3%
156
B
5%
155
C
81%
164
D
5%
155
E
5%
158
142
150
158
 +Medium 146.882 +SubsectionMedium

A developing country can substantially increase its economic growth if its businesspeople are willing to invest in modern industries that have not yet been pursued there. But being the first to invest in an industry is very risky. Moreover, businesspeople have little incentive to take this risk since if the business succeeds, many other people will invest in the same industry, and the competition will cut into their profits.

Summary
If businesspeople invest in modern industries not yet pursued, then a developing country could increase its economic growth. However, being the first to invest in an industry is risky. Businesspeople have little incentive to take this risk since other investors in the same industry will cut into their profits if the business succeeds.

Strongly Supported Conclusions
If incentives are added for businesspeople to invest in modern industries not yet pursued, then a developing country could increase economic growth.

A
Once a developing country has at least one business in a modern industry, further investment in that industry will not contribute to the country’s economic growth.
This answer is not supported. We don’t know anything from the stimulus if there exists any type of investment that will not contribute to economic growth.
B
In developing countries, there is greater competition within modern industries than within traditional industries.
This answer is unsupported. We don’t know anything about traditional industries from the stimulus to make this comparison. The stimulus is limited to modern industries.
C
A developing country can increase its prospects for economic growth by providing added incentive for investment in modern industries that have not yet been pursued there.
This answer is strongly supported. The stimulus gives us a conditional statement for the prospect of improving economic growth. Since what’s preventing investment is risk, reducing this risk by providing incentives would increase the prospects for economic growth.
D
A developing country will not experience economic growth unless its businesspeople invest in modern industries.
This answer is unsupported. This answer choice reverses the conditional relationship. The stimulus provides that experiencing economic growth is a necessary condition to businesspeople investing in modern industries, not a sufficient condition.
E
Investments in a modern industry in a developing country carry little risk as long as the country has at least one other business in that industry.
This answer is unsupported. The stimulus tells us that there is risk for the first to invest, but we don’t know if there is little risk for subsequent investors. It could be the case that investment is just as risky for them.

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LSAT PrepTest 141 Explanations

Section 1 - Reading Comprehension

Section 2 - Logical Reasoning

Section 3 - Reading Comprehension

Section 4 - Logical Reasoning

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