Question

question 7 (2 points)
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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.
i only
ii only
i and iii
i and ii
ii and iii

Explanation:

• Seasonal unemployment: Occurs due to seasonal changes in demand for labor (e.g., holiday - related jobs). Not relevant here as the change is due to technological substitution (automobile replacing horse - drawn carriages), not seasons.
• Structural unemployment: Arises from long - term changes in the structure of the economy, such as technological advancements or shifts in consumer preferences. The replacement of horse - drawn carriages by automobiles is a structural change in the transportation sector, leading to firms going bankrupt and workers losing jobs.
• Cyclical unemployment: Related to the business cycle (recessions and booms). There is no indication of a business - cycle - related downturn in this scenario.

Answer:

ii only