When the automobile replaced the horse as the primary means of transportation, the unemployment rate of blacksmiths increased. This was an example of
A) cyclical unemployment.
B) frictional unemployment.
C) seasonal unemployment.
D) structural unemployment.

Question

Quizplus · Accepted Answer

The replacement of the horse by automobiles is a classic example of structural unemployment, which occurs due to a mismatch between the skills of workers and the requirements of available jobs. In this case, blacksmiths who specialized in making and repairing equipment for horses found their skills in low demand as horses became less prevalent in transportation.

When the Automobile Replaced the Horse as the Primary Means