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

question 77

Multiple Choice

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.

• A)i and iii
• B)i and ii
• C)i only
• D)ii only
• E)ii and iii

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Definitions:

Clayton Act Section 7

A provision of the Clayton Antitrust Act that prohibits mergers and acquisitions when the effect may be substantially to lessen competition, or to tend to create a monopoly.

Anticompetitive Effect

Any action, law, or policy that reduces the level of competition in a market, potentially leading to harmful effects such as higher prices or reduced innovation.

Relevant Market Definition

The identification of the bounds of competition including both the geographic and product spaces in which firms compete.

Federal Trade Commission (FTC)

A U.S. federal agency established for the purpose of protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.