My take is B

Since area of total wood land decreased employee decreased and as the demand increased, amount of wood taken from the forest increased.

i have also choosen B.

A. doest give any thing about emploement and demad of wood.
B.this give the answer due to less area job decreases while demand increases
c.export doest not give any clue for decerase in jobs
d.if sales increases then job should increase.
e.it does not give any reason

The employment in the logging industry and wood processing industry has decreased. The quantity of wood being cut has correspondingly increased. Reading the Q stem I was expecting that this paradox can be explained by the fact that that there has been increase in mechanization/automation. There is no such options.
It is possible that logging has increased but wood processing has decreased. So most of the wood is being exported unprocessed.
IMO C

sorry guys we all share same line of thinking!!!!!!!

oa IS C
y B is wrong???? somebody

The trouble with B is that it doesn't explain the decrease in employment: the fact remains that the amount of wood taken from the forests has increased.

C points out that an increasing percentage of the wood taken from the forests in exported in its least labor-intensive form