|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
06 Feb 2023, 07:00
Kudos
Bookmarks
Question 1
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
64% (02:55) correct
36%
(02:43) wrong
based on 289
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
67% (01:37) correct 33%
(01:50) wrong
based on 346
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
68% (00:49) correct 32%
(00:54) wrong
based on 349
sessions
History
Date
Time
Result
Not Attempted Yet
Question 4
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
57% (01:19) correct 43%
(01:14) wrong
based on 325
sessions
History
Date
Time
Result
Not Attempted Yet
Question 5
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
67% (01:04) correct 33%
(00:57) wrong
based on 322
sessions
History
Date
Time
Result
Not Attempted Yet
Question 6
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
41% (01:03) correct 59%
(01:03) wrong
based on 314
sessions
History
Date
Time
Result
Not Attempted Yet
Question 7
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
39% (01:19) correct 61%
(01:25) wrong
based on 313
sessions
History
Date
Time
Result
Not Attempted Yet
Passage A is from a source published in 2004 and passage B is from a source published in 2007.
Passage A
Millions of people worldwide play multiplayer
online games. They each pick, say, a medieval
character to play, such as a warrior. Then they might
band together in quests to slay magical beasts; their
(5) avatars appear as tiny characters striding across a
Tolkienesque land.
The economist Edward Castronova noticed
something curious about the game he played: it had
its own economy, a bustling trade in virtual goods.
(10) Players generate goods as they play, often by killing
creatures for their treasure and trading it. The longer
they play, the wealthier they get.
Things got even more interesting when Castronova
learned about the “player auctions.” Players would
(15) sometimes tire of the game and decide to sell off their
virtual possessions at online auction sites.
As Castronova stared at the auction listings, he
recognized with a shock what he was looking at. It
was a form of currency trading! Each item had a value
(20) in the virtual currency traded in the game; when it was
sold on the auction site, someone was paying cold hard
cash for it. That meant that the virtual currency was
worth something in real currency. Moreover, since
players were killing monsters or skinning animals to
(25) sell their pelts, they were, in effect, creating wealth.
Passage B
Most multiplayer online games prohibit
real-world trade in virtual items, but some actually
encourage it, for example, by granting participants
intellectual property rights in their creations.
(30) Although it seems intuitively the case that
someone who accepts real money for the transfer of a
virtual item should be taxed, what about the player
who only accumulates items or virtual currency within
a virtual world? Is “loot” acquired in a game taxable,
(35) as a prize or award is? And is the profit in a purely
in-game trade or sale for virtual currency taxable?
These are important questions, given the tax revenues
at stake, and there is pressure on governments to
answer them, given that the economies of some virtual
(40) worlds are comparable to those of small countries.
Most people’s intuition probably would be that
accumulation of assets within a game should not be
taxed even though income tax applies even to noncash
accessions to wealth. This article will argue that
(45) income tax law and policy support that result. Loot
acquisitions in game worlds should not be treated as
taxable prizes and awards, but rather should be treated
like other property that requires effort to obtain, such
as fish pulled from the ocean, which is taxed only
(50) upon sale. Moreover, in-game trades of virtual items
should not be treated as taxable barter.
By contrast, tax doctrine and policy counsel
taxation of the sale of virtual items for real currency,
and, in games that are intentionally commodified,
(55) even of in-world sales for virtual currency, regardless
of whether the participant cashes out. This approach
would leave entertainment value untaxed without
creating a tax shelter for virtual commerce.
Passage A
Millions of people worldwide play multiplayer
online games. They each pick, say, a medieval
character to play, such as a warrior. Then they might
band together in quests to slay magical beasts; their
(5) avatars appear as tiny characters striding across a
Tolkienesque land.
The economist Edward Castronova noticed
something curious about the game he played: it had
its own economy, a bustling trade in virtual goods.
(10) Players generate goods as they play, often by killing
creatures for their treasure and trading it. The longer
they play, the wealthier they get.
Things got even more interesting when Castronova
learned about the “player auctions.” Players would
(15) sometimes tire of the game and decide to sell off their
virtual possessions at online auction sites.
As Castronova stared at the auction listings, he
recognized with a shock what he was looking at. It
was a form of currency trading! Each item had a value
(20) in the virtual currency traded in the game; when it was
sold on the auction site, someone was paying cold hard
cash for it. That meant that the virtual currency was
worth something in real currency. Moreover, since
players were killing monsters or skinning animals to
(25) sell their pelts, they were, in effect, creating wealth.
Passage B
Most multiplayer online games prohibit
real-world trade in virtual items, but some actually
encourage it, for example, by granting participants
intellectual property rights in their creations.
(30) Although it seems intuitively the case that
someone who accepts real money for the transfer of a
virtual item should be taxed, what about the player
who only accumulates items or virtual currency within
a virtual world? Is “loot” acquired in a game taxable,
(35) as a prize or award is? And is the profit in a purely
in-game trade or sale for virtual currency taxable?
These are important questions, given the tax revenues
at stake, and there is pressure on governments to
answer them, given that the economies of some virtual
(40) worlds are comparable to those of small countries.
Most people’s intuition probably would be that
accumulation of assets within a game should not be
taxed even though income tax applies even to noncash
accessions to wealth. This article will argue that
(45) income tax law and policy support that result. Loot
acquisitions in game worlds should not be treated as
taxable prizes and awards, but rather should be treated
like other property that requires effort to obtain, such
as fish pulled from the ocean, which is taxed only
(50) upon sale. Moreover, in-game trades of virtual items
should not be treated as taxable barter.
By contrast, tax doctrine and policy counsel
taxation of the sale of virtual items for real currency,
and, in games that are intentionally commodified,
(55) even of in-world sales for virtual currency, regardless
of whether the participant cashes out. This approach
would leave entertainment value untaxed without
creating a tax shelter for virtual commerce.
1. Which one of the following pairs of titles would be most appropriate for passage A and passage B, respectively?
(A) “The Economic Theories of Edward Castronova” “Intellectual Property Rights in Virtual Worlds”
(B) “An Economist Discovers New Economic Territory” “Taxing Virtual Property”
(C) “The Surprising Growth of Multiplayer Online Games” “Virtual Reality and the Law”
(D) “How to Make Money Playing Games” “Closing Virtual Tax Shelters”
(E) “A New Economic Paradigm” “An Untapped Source of Revenue”
(A) “The Economic Theories of Edward Castronova” “Intellectual Property Rights in Virtual Worlds”
(B) “An Economist Discovers New Economic Territory” “Taxing Virtual Property”
(C) “The Surprising Growth of Multiplayer Online Games” “Virtual Reality and the Law”
(D) “How to Make Money Playing Games” “Closing Virtual Tax Shelters”
(E) “A New Economic Paradigm” “An Untapped Source of Revenue”
2. Which one of the following most accurately expresses how the use of the phrase “skinning animals” in passage A (line 24) relates to the use of the phrase “fish pulled from the ocean” in passage B (line 49)?
(A) The former refers to an activity that generates wealth, whereas the latter refers to an activity that does not generate wealth.
(B) The former refers to an activity in an online game, whereas the latter refers to an analogous activity in the real world.
(C) The former, unlike the latter, refers to the production of a commodity that the author of passage B thinks should be taxed.
(D) The latter, unlike the former, refers to the production of a commodity that the author of passage B thinks should be taxed.
(E) Both are used as examples of activities by which game players generate wealth.
(A) The former refers to an activity that generates wealth, whereas the latter refers to an activity that does not generate wealth.
(B) The former refers to an activity in an online game, whereas the latter refers to an analogous activity in the real world.
(C) The former, unlike the latter, refers to the production of a commodity that the author of passage B thinks should be taxed.
(D) The latter, unlike the former, refers to the production of a commodity that the author of passage B thinks should be taxed.
(E) Both are used as examples of activities by which game players generate wealth.
3. With regard to their respective attitudes toward commerce in virtual items, passage A differs from passage B in that passage A is more
(A) critical and apprehensive
(B) academic and dismissive
(C) intrigued and excited
(D) undecided but curious
(E) enthusiastic but skeptical
(A) critical and apprehensive
(B) academic and dismissive
(C) intrigued and excited
(D) undecided but curious
(E) enthusiastic but skeptical
4. Based on what can be inferred from their titles, the relationship between which one of the following pairs of documents is most analogous to the relationship between passage A and passage B?
(A) “Advances in Artificial Intelligence” “Human Psychology Applied to Robots”
(B) “Internet Retailers Post Good Year” “Lawmakers Move to Tax Internet Commerce”
(C) “New Planet Discovered in Solar System” “Planet or Asteroid: Scientists Debate”
(D) “Biologists Create New Species in Lab” “Artificially Created Life: How Patent Law Applies”
(E) “A Renegade Economist’s Views on Taxation” “Candidate Runs on Unorthodox Tax Plan”
(A) “Advances in Artificial Intelligence” “Human Psychology Applied to Robots”
(B) “Internet Retailers Post Good Year” “Lawmakers Move to Tax Internet Commerce”
(C) “New Planet Discovered in Solar System” “Planet or Asteroid: Scientists Debate”
(D) “Biologists Create New Species in Lab” “Artificially Created Life: How Patent Law Applies”
(E) “A Renegade Economist’s Views on Taxation” “Candidate Runs on Unorthodox Tax Plan”
5. The passages were most likely taken from which one of the following pairs of sources?
(A) passage A: a magazine article addressed to a general audience passage B: a law journal article
(B) passage A: a technical journal for economists passage B: a magazine article addressed to a general audience
(C) passage A: a science-fiction novel passage B: a technical journal for economists
(D) passage A: a law journal article passage B: a speech delivered before a legislative body
(E) passage A: a speech delivered before a legislative body passage B: a science-fiction novel
(A) passage A: a magazine article addressed to a general audience passage B: a law journal article
(B) passage A: a technical journal for economists passage B: a magazine article addressed to a general audience
(C) passage A: a science-fiction novel passage B: a technical journal for economists
(D) passage A: a law journal article passage B: a speech delivered before a legislative body
(E) passage A: a speech delivered before a legislative body passage B: a science-fiction novel
6. Which one of the following most accurately describes the relationship between the two passages?
(A) Passage A summarizes a scholar’s unanticipated discovery, while passage B proposes solutions to a problem raised by the phenomenon discovered.
(B) Passage A explains an economic theory, while passage B identifies a practical problem resulting from that theory.
(C) Passage A reports on a subculture, while passage B discusses the difficulty of policing that subculture.
(D) Passage A challenges the common interpretation of a phenomenon, while passage B reaffirms that interpretation.
(E) Passage A states a set of facts, while passage B draws theoretical consequences from those facts.
(A) Passage A summarizes a scholar’s unanticipated discovery, while passage B proposes solutions to a problem raised by the phenomenon discovered.
(B) Passage A explains an economic theory, while passage B identifies a practical problem resulting from that theory.
(C) Passage A reports on a subculture, while passage B discusses the difficulty of policing that subculture.
(D) Passage A challenges the common interpretation of a phenomenon, while passage B reaffirms that interpretation.
(E) Passage A states a set of facts, while passage B draws theoretical consequences from those facts.
7. Based on passage B, which one of the following is a characteristic of some “games that are intentionally commodified” (line 54)?
(A) The game allows selling real items for virtual currency.
(B) The game allows players to trade avatars with other players.
(C) Players of the game grow wealthier the longer they play.
(D) Players of the game own intellectual property rights in their creations.
(E) Players of the game can exchange one virtual currency for another virtual currency.
(A) The game allows selling real items for virtual currency.
(B) The game allows players to trade avatars with other players.
(C) Players of the game grow wealthier the longer they play.
(D) Players of the game own intellectual property rights in their creations.
(E) Players of the game can exchange one virtual currency for another virtual currency.
RC Butler 2023 - Practice Two RC Passages Everyday.
Passage # 08 Date: 06-Feb-2023
This question is a part of RC Butler 2023. Click here for Details
Passage # 08 Date: 06-Feb-2023
This question is a part of RC Butler 2023. Click here for Details
- Source: LSAT Official PrepTest 71
- Difficulty Level: 650
17 Feb 2023, 00:06
Kudos
Bookmarks
7. Based on passage B, which one of the following is a characteristic of some “games that are intentionally commodified” (line 54)?
(A) The game allows selling real items for virtual currency.
(B) The game allows players to trade avatars with other players.
(C) Players of the game grow wealthier the longer they play.
(D) Players of the game own intellectual property rights in their creations.
(E) Players of the game can exchange one virtual currency for another virtual currency.
Passage B
Most multiplayer online games prohibit
real-world trade in virtual items, but some actually
encourage it, for example, by granting participants
intellectual property rights in their creations.
By contrast, tax doctrine and policy counsel
taxation of the sale of virtual items for real currency,
and, in games that are intentionally commodified,
(55) even of in-world sales for virtual currency, regardless
of whether the participant cashes out.
Ans D
(A) The game allows selling real items for virtual currency.
(B) The game allows players to trade avatars with other players.
(C) Players of the game grow wealthier the longer they play.
(D) Players of the game own intellectual property rights in their creations.
(E) Players of the game can exchange one virtual currency for another virtual currency.
Passage B
Most multiplayer online games prohibit
real-world trade in virtual items, but some actually
encourage it, for example, by granting participants
intellectual property rights in their creations.
By contrast, tax doctrine and policy counsel
taxation of the sale of virtual items for real currency,
and, in games that are intentionally commodified,
(55) even of in-world sales for virtual currency, regardless
of whether the participant cashes out.
Ans D
13 May 2023, 02:49
Kudos
Bookmarks
Can anyone explain the answer of question 2?
Posted from my mobile device
Posted from my mobile device
