PrepTest 156, Section 1, Question 19
Traditionally, corporate bankruptcy law placed highest priority on(440 more words not shown)
The primary purpose of the(13 more words not shown)
- Aprovide criticisms of(7 more words not shown)
- Boffer evidence that(19 more words not shown)
- Crefute the argument(7 more words not shown)
- Doffer an alternative(10 more words not shown)
- Esuggest refinements to(9 more words not shown)
Reading the passage
The third paragraph presents Korobkin's principles. The final paragraph asks what is still wrong with that approach: it can raise the price of credit, and it offers no empirical method for comparing losses or deciding when trade-offs are justified. So our prediction is criticism of Korobkin's proposal, while retaining the concession that it is fairer than Jackson's.
Working the answers
- ACorrect
The paragraph identifies significant weaknesses in the position just described. The increased lending risk and unresolved comparison of losses explain why the author stops short of endorsing it outright.
- B
The author doesn't show that Jackson's traditional model better satisfies inclusion and rational planning. Pointing out problems in Korobkin's approach doesn't establish that the alternative achieves Korobkin's own principles more successfully.
- C
The second paragraph argues that Jackson neglects people other than creditors. The final paragraph doesn't refute that objection or show those people should be ignored. It challenges how Korobkin's proposed solution would work. Criticizing the remedy is different from disproving the original complaint.
- D
No third approach is offered. We get reasons Korobkin's proposal is incomplete, not a replacement method for solving the problem.
- E
Identifying a weakness isn't the same as proposing a refinement. The author doesn't tell lawmakers how to measure vulnerability, resolve the trade-offs, or rewrite modern bankruptcy law.
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