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WAEC Economics 2006 Question 40

Question 40

Labour Market

In a rapidly growing economy, a change in technology which is labour saving is likely to cause

  1. A.residual unemployment
  2. B.structural unemployment
  3. C.disguised unemployment
  4. D.frictional unemployment.
Show the answer and explanation

Answer: B (structural unemployment)

Explanation

Labour-saving technology changes the structure of production and permanently replaces workers, which is structural unemployment.