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

question 84

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

• A) frictional unemployment.
• B) structural unemployment.
• C) frictional and cyclical unemployment.
• D) cyclical unemployment.

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Definitions:

Debts Exceeds Property

A financial situation where the total amount of liabilities surpasses the value of assets owned.

Bankruptcy Legislation

Laws and regulations that govern the process through which individuals or businesses unable to meet their debt obligations can seek relief.

Equitable Distribution

A legal principle in divorce law where marital property is divided fairly between the spouses, not necessarily equally.

Recalcitrant Debtors

Individuals or entities that stubbornly refuse to pay debts they owe, despite legal obligations to do so.