Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that
A) firms have been trying to weaken unions by reducing their reliance on labor.
B) workers in the U.S. have become less productive and are no longer able to compete in the global economy.
C) firms in many industries have become so efficient that they need fewer workers.
D) the economy has been in a prolonged depression that has lasted more than a decade.

Question

Manufacturing firms in the U.S. have consistently been laying off workers. The best explanation of this trend is that 
A) firms have been trying to weaken unions by reducing their reliance on labor.
B) workers in the U.S. have become less productive and are no longer able to compete in the global economy.
C) firms in many industries have become so efficient that they need fewer workers.
D) the economy has been in a prolonged depression that has lasted more than a decade.

Quizplus · Accepted Answer

While layoffs in manufacturing seem to imply that American firms are becoming less competitive, the opposite is actually the case. The layoffs are the result of tremendous improvements in productivity in recent years, which have enabled U.S. manufacturing firms to produce more goods with fewer workers.

Manufacturing Firms in the U