PrepTest 123, Section 1, Question 20

ApplicationDifficulty5 of 5
Passage 3Local participation in renewable-energy projects
The questionFull text in your LawHub copy of PrepTest 123

The following passage was written in the mid-1990s.(458 more words not shown)

Which one of the following,(17 more words not shown)

Reading the passage

The last sentence predicts that India's project has a good chance of staying competitive and profitable because it developed local involvement.

What we’re looking for

What could interfere with that? Maybe its present success still depends on something that won't last. We need a reason to doubt the long-term forecast, not simply another drawback of energy production.

Working the answers

  • A
    Correct

    If temporary subsidies are the main reason the project is profitable, its current success may disappear when they end. Local capacity might help without being enough to sustain profitability on its own. We don't have to prove the project will collapse; this dependence gives us a direct reason to doubt the forecast.

  • B

    Knowing the Danish agency invested more than the U.S. agency doesn't tell us whether India's project can keep paying its costs. A difference in initial funding isn't itself evidence against long-term profitability.

  • C

    Being allowed to charge higher fees could help revenue. This supplies no reason to expect that the project will become unprofitable.

  • D

    This challenges the environmental benefits of wind equipment, but the claim we're testing is about staying competitive and profitable. Pollution during manufacture doesn't by itself undermine that claim.

  • E

    Cleaner fossil-fuel plants might be environmentally welcome, but we're told nothing about their prices or their effect on demand for this project's electricity. Cleaner doesn't automatically mean the wind project will become uncompetitive.

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