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

The displacement of workers due to technological advancement or changes in market demand is an example of structural unemployment, as their skills are no longer in demand. Seasonal unemployment is caused by fluctuations in demand within particular industries during specific seasons of the year, and cyclical unemployment is caused by economic downturns and fluctuations in the business cycle. Neither seasonal nor cyclical unemployment is applicable in the scenario described. Therefore, the correct answer is ii) only, structural unemployment.

When the Automobile Replaced Horse-Drawn Carriages as the Principal Means