GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2508
Given Kudos: 1053
GPA: 3.39
Re: Japanese factory workers are guaranteed lifetime jobs, bonu
[#permalink]
29 Mar 2021, 00:55
Japanese factory workers are guaranteed lifetime jobs, bonuses paid on the basis of productivity and corporate profits, and a wage rate that is not attached to a particular job. Paradoxically, these guarantees do not discourage factory owners from introducing labor-saving machinery. Such innovations are to the factory owners' advantage despite the fact that the owners must protect the wages of their workers.
Which of the following, if true, logically explains why the introduction of labor-saving machinery is advantageous to factory owners?
(A) Before a Japanese factory worker is hired, he or she must present a record of his or her previous productivity.
(B) Labor-saving machinery increases productivity, thus yielding profits that more than cover the cost of retraining workers for other jobs.
(C) The purchase and maintenance of new machinery add significantly to the final cost of the goods produced.
(D) Factory workers demand a change of procedure in the routine tasks they perform.
(E) Limited competition exists among Japanese factories for consumer markets.
Only option B directly relates to the paragraph and all other option discussed side information.
Answer: B