Question

The music industry often claims to suffer significant financial losses due to illegal downloading and piracy. However, some industry experts argue that these estimates are greatly exaggerated and that the actual loss to the music industry is much smaller than projected because...
Which of the following best completes the passage below?

• A. the total market value of pirated music is 30% of the total revenue generated by the music industry
• B. the music industry would still face financial challenges even if it managed to eliminate all instances of online piracy
• C. the majority of people who download music illegally would not purchase it legally even if there were no piracy
• D. many individuals who engage in online piracy do not actively listen to the pirated music
• E. only a small fraction of available music is frequently pirated, whereas the majority remains unaffected by piracy

Hint:

When an argument is about calculating financial loss, critically examine the assumptions behind the calculation. A common flaw is equating a potential event (a download) with a definite outcome (a lost sale). The best counter-argument will often challenge this link.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
This is a Critical Reasoning "complete the argument" question. We need to find the answer choice that provides the most logical reason to support the experts' claim that the actual financial loss from piracy is smaller than the projected estimates.
Step 2: Detailed Explanation:
The Discrepancy: Music industry's projected loss vs. experts' claim of a much smaller actual loss.
The Implied Flaw: The industry's large loss estimates are likely based on a simple, flawed assumption: that every illegal download represents one lost sale. (Projected Loss = Number of Downloads \(\times\) Price per Album/Song).
The Task: We need to find a reason that challenges this flawed assumption. The reason should explain why an illegal download does not necessarily equal a lost sale.
Let's analyze the options:

(A) This provides a statistic but doesn't explain the underlying reason for the discrepancy. A loss equivalent to 30% of total revenue could still be considered very significant.
(B) This discusses other financial challenges and is irrelevant to calculating the specific loss caused by piracy.
(C) This is the correct answer. It directly attacks the "one download = one lost sale" assumption. If the people who download illegally would not have bought the music anyway, then the industry has not "lost" a sale from their actions. This would mean the actual financial damage is much smaller than the number of downloads would suggest.
(D) Whether the person listens to the music is irrelevant to the financial loss. The act of acquiring it without payment is the core issue.
(E) This discusses the scope of piracy (which music gets pirated), not the financial impact of the piracy that does occur. The industry's loss calculation is based on the songs that \textit{are} pirated, so this point is irrelevant.
Step 3: Final Answer:
The argument that the actual loss is smaller than projected is best supported by the reason that most illegal downloaders are not potential customers in the first place. If they wouldn't buy the music legally, then their downloading does not constitute a lost sale.