When the prices of products fell in the USA due to overproduction, ______.

The production sector started employing more people to continue with the high rate of production.
The production sector started laying people off because it could no longer afford to pay their wages.
The production sector simply produced less in order to save their work-force.
None of the above.

None of the above. When the prices of products fell in the USA due to overproduction, it is possible that the production sector may have experienced a decrease in demand and profitability, leading to potential layoffs or reduced production. However, the specific response of the production sector would depend on various factors such as market conditions, business strategies, and government interventions.

The correct answer is: The production sector started laying people off because it could no longer afford to pay their wages.