The demand for labor is a derived demand. Explain what is meant by the term "derived demand."
What will be an ideal response?
A derived demand is the demand for a factor of production that is derived from the demand for the good or service the factor produces.
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An increase in foreign incomes
A) increases aggregate demand in the United States. B) increases the aggregate quantity demanded in the United States. C) decreases the aggregate quantity demanded in the United States. D) decreases aggregate demand in the United States.
It is not possible to have an absolute advantage in producing a good or service without having a comparative advantage
Indicate whether the statement is true or false
The primary value of data for real GDP lies in its ability to
a. reflect the welfare of a society relative to a previous period. b. compare a nation's productivity during two periods widely separated in time. c. indicate short-term changes in the output rate of a nation. d. indicate how hard the people of a nation are working.
Demand pull inflation occurs when the:
A. price of necessity goods increases suddenly. B. business cycle becomes sporadic and unpredictable. C. price level changes in response to changes in the business cycle. D. price of a key input increases suddenly.