When the automobile replaced horse- drawn carriages as the principal means of transportation, firms producing horse- drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing
A)structural unemployment.
B)frictional and cyclical unemployment.
C)cyclical unemployment.
D)frictional unemployment.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a long-term change in the economy that alters the demand for certain skills, such as the shift from horse-drawn carriages to automobiles.

When the Automobile Replaced Horse- Drawn Carriages as the Principal