PrepTest 157, Section 4, Question 14

AnalogyDifficulty5 of 5
Passage 2Prediction markets as information processors or opinion measures
The questionFull text in your LawHub copy of PrepTest 157

Passage A Markets, such as stock exchanges, distill(484 more words not shown)

Passage A(279 more words not shown)

Passage B(213 more words not shown)

The relation between the conception(26 more words not shown)

Reading the passage

Separate active feedback from passive measurement. In A's experiment, informed people trade, prices move, and other people learn from those movements. The market helps spread knowledge and change participants' behavior. B instead treats the price as a snapshot of opinions already held.

What we’re looking for

We need the first device to help regulate a condition and the second simply to report it. That is a clearer version of the distinction than merely calling one account good and the other bad.

Working the answers

  • A

    A typewriter and a word processor are both tools for producing text. Their differences don't capture active adjustment versus reporting an existing condition.

  • B
    Correct

    A thermostat uses information about temperature to regulate heating or cooling; a thermometer reports the temperature. Likewise, A's market uses trading and price feedback to spread information and adjust behavior, while B's market merely records prevailing opinion. The analogy concerns those roles, not a claim that markets literally set the chance of an election outcome.

  • C

    Human-powered and motor-powered transportation differ in their sources of motion. Neither part of our comparison turns on that distinction.

  • D

    Broadcast and print are different ways to distribute information. Both can report and interpret; the titles alone don't supply the active-feedback versus passive-measurement relationship.

  • E

    Digital and film cameras use different recording technologies, but both record images. That difference doesn't match A's market changing the distribution of knowledge versus B's market simply measuring opinion.

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