Multiple Choice

In a city historically known for its textile production by skilled artisans, a new steam-powered loom is introduced in several large factories. This new machine can produce fabric ten times faster than a traditional handloom and requires only one operator to oversee multiple machines. Within a few years, observers note a sharp increase in the number of jobless people in the city's textile district, even as the total amount of fabric produced by the city has doubled. Which of the following statements best analyzes the primary cause of the increased joblessness in the textile district?

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Updated 2025-07-31

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Introduction to Microeconomics Course

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