PrepTest 140, Section 4, Question 12

OrganizationDifficulty3 of 5
Passage 2Virtual economies and taxation
The questionFull text in your LawHub copy of PrepTest 140

Passage A is from a source published in(494 more words not shown)

Passage A(226 more words not shown)

Passage B(276 more words not shown)

Which one of the following(9 more words not shown)

Reading the passage

A discovers the activity; B addresses a problem it creates. Once virtual items have real value, tax questions follow: should merely obtaining loot count as income, and which trades or sales should be taxable? B doesn't just ask those questions. It recommends answers. Our description needs to preserve that step from identifying the issue to proposing how it should be handled.

Working the answers

  • A
    Correct

    Castronova's surprise establishes the unanticipated discovery in A. B then proposes ways to treat the resulting economic activity: ordinary loot accumulation and in-game barter should escape taxation, while real-money sales and specified commercial in-world sales should be taxed. That is a solution to the tax problem raised by the phenomenon.

  • B

    A primarily reports a discovery, rather than explaining an economic theory. More importantly, B goes beyond identifying a problem. Leaving out its proposed treatment omits much of the writer's work.

  • C

    A focuses on economic activity within the gaming community, not a general report about its subculture. B isn't about the difficulty of policing gamers either. It argues for particular tax distinctions, not a broad account of enforcement problems.

  • D

    A doesn't challenge an established interpretation. It presents a discovery, and B doesn't simply reaffirm some common view of it. B adds an analysis of legal consequences and appropriate policy.

  • E

    A certainly gives facts, but B's purpose is more specific than drawing theoretical consequences. It recommends how law should treat particular transactions. A broad description that loses that practical legal purpose is weaker than A's precise match.

More Organization questions

Learn the LSAT our way

Our platform drills Organization questions at your level and adjusts as you improve.

See plans and pricing

HFL LSAT Advisor

Online

Hi! I'm HFL's LSAT advisor.

Tell me your score and goal and I'll point you to the right plan — or ask me anything.