Examkin

Question

Difficulty: MediumViewpoint Attribution

Read the following passage regarding sociological perspectives on the informal economy:

Historically, traditional modernization theorists viewed the informal economy in developing nations as a vestige of pre-capitalist social structures. According to this model, unregulated economic activity was merely a transitional phase that would inevitably be absorbed into the formal sector as industrialization matured. In the late twentieth century, however, structuralist sociologists advanced a radically different paradigm. Scholars in this camp argued that rather than being a residual holdover, the informal economy is an integral, actively generated component of modern global capitalism. Structuralists contend that as global competition intensifies, formal enterprises deliberately externalize risks and labor costs by subcontracting work to unregulated, informal networks. While the structuralist critique effectively dismantles the modernization theorists' assumption of a teleological progression toward formalization, it inadvertently homogenizes informal workers. By characterizing the informal sector primarily as a subjugated appendage to global capital, structuralists often overlook the autonomous entrepreneurial networks that operate entirely outside the purview of formal corporate supply chains.

Which one of the following characterizations of the informal economy is explicitly attributed to the structuralist sociologists in the passage?

  1. It is an intentionally produced feature of the modern global economic system that allows formal businesses to reduce liabilities and expenses.Answer
  2. B
    It is a temporary developmental stage that will naturally be eradicated by the expansion of formalized industrial institutions.
  3. C
    It is largely characterized by localized entrepreneurial initiatives that operate independently from global corporate supply chains.
  4. D
    It inadvertently homogenizes the labor force by dismantling teleological progression in developing nations.
  5. E
    It constitutes the sole mechanism through which modern enterprises can maintain the flexibility required to survive global competition.

Answer

The correct answer is the option stating that the informal economy is an intentionally produced feature of the modern global economic system that allows formal businesses to reduce liabilities and expenses.
This option accurately captures and paraphrases the structuralist viewpoint as described in the passage. The text explicitly notes that structuralists view the informal economy as an 'actively generated component of modern global capitalism' and that formal enterprises utilize it to 'deliberately externalize risks and labor costs.' This directly translates to the concept of it being an intentionally produced feature that helps businesses reduce liabilities and expenses.

Step-by-Step Solution

1
Analyze the question stem to determine the task.
The question requires identifying the specific characterization of the informal economy held by 'structuralist sociologists' as stated in the passage.
Viewpoint attribution questions require isolating one specific perspective from a multi-perspective text.
2
Scan the text to locate the structuralist sociologists' arguments.
The relevant section begins: 'In the late twentieth century, however, structuralist sociologists advanced a radically different paradigm...'
Locating the exact textual evidence prevents mixing up different scholars' views.
3
Extract the specific claims made by the structuralists.
They argue the informal economy is an 'integral, actively generated component of modern global capitalism' and that formal enterprises use it to 'deliberately externalize risks and labor costs.'
This establishes the criteria for the correct answer choice.
4
Evaluate the options against the extracted textual evidence.
The correct option paraphrases 'actively generated' as 'intentionally produced' and 'externalize risks and labor costs' as 'reduce liabilities and expenses.'
Correct answers on the LSAT frequently rely on synonymous phrasing rather than verbatim quotes to test true comprehension.

Key Concept

Accurately attributing specific arguments or beliefs to the correct group or scholar mentioned in a multi-perspective passage.
Rate this question

Topics

Viewpoint Attribution

More questions from this topic