#19 - Must Be True, Purpose

[Administrator]

Complete Question Explanation
(See the complete passage discussion here: lsat/viewtopic.php?t=14161)

The correct answer choice is (D)

This Specific Reference/Purpose question asks us to explain why the author mentions railroads in
line 51. Such questions almost always require a more thorough understanding of the context in which
the specific reference appears.

Answer choice (A): There is no reason to believe that the metaphor of the Invisible Hand is
inherently ambiguous.

Answer choice (B): While the concept of the Pin Factory model has been difficult to represent
mathematically, the reference to railroads cannot illustrate that point.

Answer choice (C): While railroads do have characteristics of the Pin Factory model, there is
no indication that such industries are increasingly prevalent. This answer choice contains an
exaggeration.

Answer choice (D): This is the correct answer choice. In the final paragraph, the author elaborates
on the economists’ initial failure to account for the Pin Factory model, despite evidence that many
enterprises are characterized by increasing returns to scale. The reference to railroads provides an
example of such an enterprise.

Answer choice (E): Hopefully you were able to eliminate this answer choice quickly, as it falls
entirely outside the scope of passage.

[mpoulson]

Hello,

Can you indicate why the answer to 19 is D and not C. From my perspective, the author was mentioning the railroad to mention the fact that "obviously increasing returns characterized many enterprises" which seems to me to fit nicely with C. Yet this is incorrect. Can you specifically say what is wrong with C and why D is a better answer. Thank you.

V/r,

Micah

[Robert Carroll]

Micah,

Answer choice (C) says "increasing prevalence." The railroad is one industry where this is true, but are there more such industries now than before? The passage does not say. Thus, answer choice (C) exaggerates.

Answer choice (D) recognizes railroads as an industry where the Pin Factory metaphor is correct and the Invisible Hand metaphor is incorrect. The author brought up railroads to show an industry where this superiority of the Pin Factory holds. Thus, answer choice (D) correctly identifies why railroads were brought up in the passage.

Robert Carroll

[Pragmatism]

So, I boiled it down between C & D, but ended up going with C. Now, I don't want you to beat on a dead horse here, but can't the phrase, "call attention to the increasing prevalence" in answer choice C be supported by, "Many economist tried repeatedly to bring the Pin Factory into the mainstream of economic thought to reflect the fact that increasing returns obviously characterized many enterprises?"

Furthermore, I know we are not supposed to bring real life scenarios into the LSAT, but, the railroads industry is within itself a monopoly, or at the very least an oligopoly depending on which aspect of the railroad is put to question. If the question is the tracks, then one can the tracks in its entirety is owned by one, some, or several corporations, but that within itself wouldn't foster competition in how competition is traditionally defined. However, if railroads was being taken as business that utilize the railroads, then wouldn't that by default give credence to the theory of Invisible Hand?

Either ways, my first analysis from the passage gives weight to answer choice C, and my latter analysis ceases to support answer choice D. Could you please provide me with your insight, dear PowerScore, the might LSAT thinker.

[Malila Robinson]

Hi Pragmatism,
The answer lies in the sentence's grammar. "Many economists tried repeatedly to bring the Pin Factory into the mainstream of economic thought to reflect the fact that increasing returns obviously characterized many enterprises, such as railroads." From this sentence we don't know that many economists were referencing railroads in their studies. We do know that increasing returns characterized many enterprises, one of which is the railroad. Without additional information, linking the reference to railroads with many economists would be classified as an exaggeration. This takes (C) off the table. This grammatical breakdown also explains why (D) is the best answer since it is presented as an example where the "Pin Factory" metaphor (increasing returns) is correct.

[mluskey15]

I initially picked (D) and then switched my answer choice to (C). Because lines 48-51 state, "Many economists tried repeatedly to bring the Pin Factory into the mainstream of economic thought to reflect the fact that increasing returns obviously characterized many enterprises, such as railroads," I eliminated (D) as it is referencing shortcomings of economists' emphasis on the Invisible Hand while (C) references characteristics of the Pin Factory, the Pin Factory being mentioned in lines 48-51. I'm having a hard time understanding why either of the answer choices are wrong because I'm understanding that characteristics of the Pin Factory are one of the shortcomings of the Invisible Hand. Please help! Thanks

[Rachael Wilkenfeld]

Hi mluskey,

One of the key things to note about this question is the question type. It's asking for the author's purpose, which is part of the must be true family of questions. Therefore, we need to be able to support all parts of the answer choice with information from the passage.

The biggest problem with answer choice (c) is that the author never tells us that there is an increasing prevalence of industries that have Pin Factory characteristics. The author discusses increasing returns frequency. But they do not address the prevalence of industries with pin factory characteristics.

Answer choice (d) on the other hand, is supported by the passage. They are using the example of the railroad to show a situation where the invisible hand theory doesn't work---the railroads are an example of scale, not competition.

Hope that helps!
Rachael

[MichaelYan]

I was really puzzled as to how much outside knowledge should be brought into answering this question. Based solely on languages in the passage regarding the Diminishing Return, I was unable to justify the word "shortcoming" in D, as the passage simply states in very neutral language that the Diminishing Return has been prominent in economic theory, whereas the Increasing Return has not. Considering that the author focused on how difficult it has been for economists to prove Increasing Return in that last paragraph, I chose B. While using some knowledge in economy I could easily know that D is right, but using the passage on its own, how can I justify "shortcoming" as the author's purpose given that the author has not made an argument in the entire passage as to which one of the two competing theories is right or wrong.

[Jeremy Press]

Hi Michael,

You can get to answer choice D here without using outside knowledge. Go to line 33, where the passage is describing the Invisible Hand and says, "the idea that free markets always get it right depends on the assumption that returns to scale are diminishing." Since that's the assumption of the Invisible Hand, if we could show the assumption doesn't necessarily hold, we'd weaken the theory. A weakness in a theory is properly described as a "shortcoming" of that theory. So the railroad, as an industry that is characterized by "increasing returns," shows that the Invisible Hand theory's assumption of diminishing returns isn't necessarily true, weakening the theory (showing a shortcoming of it).

That's all you need to arrive at answer choice D!

I hope this helps!

Jeremy