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
I. seasonal unemployment. ii. structural unemployment. iii. cyclical 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 Means