NECO 2004 Economics · Question 29

The types of unemployment that evolved the use of machines to replaces human labour is known as

Options

  1. A.cyclical unemployment
  2. B.frictional unemployment
  3. C.seasonal unemployment
  4. D.structural unemployment
  5. E.technological unemployment

Answer: E. technological unemployment

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks which type of unemployment results from machines replacing human labour. The key phrase is "use of machines to replace human labour."

Step 2: Explain the concepts

  • Cyclical unemployment: Caused by a downturn in the business cycle (recession or depression), when demand for goods falls.
  • Frictional unemployment: Occurs when workers are between jobs or searching for new ones, for example fresh graduates looking for their first job.
  • Seasonal unemployment: Occurs when work depends on the time of year, such as farm labourers in the off-season.
  • Structural unemployment: Caused by a mismatch between workers' skills and available jobs, usually due to long-term changes in the economy (such as a decline of an industry).
  • Technological unemployment: Caused directly by the introduction of machines, automation, or new technology that replaces human workers.

Step 3: Match the clue to the answer Machines replacing workers is the definition of technological unemployment. For example, a bakery installs automatic mixing and packaging machines and lays off workers who did those tasks by hand.

Structural unemployment (D) is related, since technology can contribute to it, but the question names machines specifically, so the most precise answer is technological unemployment.

Step 4: Answer The correct option is E. technological unemployment.

Exam tip: Look for keywords in the question:

  • "Machines/automation" → technological
  • "Between jobs" → frictional
  • "Time of year" → seasonal
  • "Recession/depression" → cyclical
  • "Skills mismatch/industry decline" → structural

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