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

Question

Quizplus · Accepted Answer

This is an example of structural unemployment as the decreased demand for horse-drawn carriages is a long-term shift in the economy, rather than a temporary or cyclical fluctuation. This results in a mismatch between the skills and qualifications of workers and the available jobs, leading to unemployment.

Unemployment Caused by Permanently Decreased Demand for Horse-Drawn Carriages Is