PrepTest 128, Section 1, Question 13

ApplicationDifficulty4 of 5
Passage 2Bankruptcy law: punishment and economic recovery
The questionFull text in your LawHub copy of PrepTest 128

In many Western societies, modern bankruptcy laws have(424 more words not shown)

Which one of the following,(13 more words not shown)

Reading the passage

The author chose an economic argument: harsh punishment gets in the way of a healthier, more productive system. I'd therefore look for evidence that economies do better with harsh punishment. A claim that debtors morally deserve prison would miss the basis of this argument.

Working the answers

  • A

    This does give punishment a potential benefit: people behave more responsibly afterward. Keep it in contention. But it doesn't tell us whether that improvement outweighs the lost earnings, disrupted businesses, and other economic costs of imprisonment.

  • B

    Financial failure can hurt the local economy even after workers find jobs. That doesn't compare harsh punishment with a less punitive response or show that punishment would have produced a better result.

  • C

    More filings don't by themselves establish a less healthy economy. The opening already acknowledges increased reliance on bankruptcy; the author's defense is about the economic consequences of the response to insolvency.

  • D

    This is relevant but limited: growth followed liquidation despite job losses. It doesn't establish that liquidation caused the growth or that the economy would have done worse if the company had continued operating.

  • E
    Correct

    Comparable countries that still imprison debtors have greater economic health. That directly challenges the author's economic case against imprisonment. It doesn't prove that prison caused the difference, but it puts more pressure on the argument than A's narrower evidence about individual responsibility. That's why our initial interest in A should give way to E.

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