Unemployment caused by permanently decreased demand for horse- drawn carriages is an example of
A)frictional unemployment.
B)discouraged unemployment.
C)cyclical unemployment.
D)old- fashioned unemployment.
E)structural unemployment.

Question

Quizplus · Accepted Answer

This is an example of structural unemployment, which occurs when there is a mismatch between the skills of the workforce and the needs of the job market. With the decreased demand for horse-drawn carriages, workers in that industry may struggle to find new employment because their skills are no longer in demand.

Unemployment Caused by Permanently Decreased Demand for Horse- Drawn Carriages