Derived demand:
A. is the sum total of all factors of production for a given good or service.
B. refers to the demand for variable inputs when at least one fixed input exists.
C. refers to the supply decisions of a final good influencing the demand for the inputs needed to make it.
D. is only computed for the long-run demand decisions based on short-run marginal changes.
C. refers to the supply decisions of a final good influencing the demand for the inputs needed to make it.
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The Phillips curve shows the relationship between
A. the rate of inflation and the rate of unemployment. B. the rate of growth of real GDP and the rate of unemployment. C. real prices and real GDP. D. the rate of inflation and the rate of growth of real GDP.
Which is the best example of a firm's implicit costs?
A) wages B) the opportunity cost of owner-provided labor C) rent D) taxes
In principle, we would expect the aggregate demand curve to be vertical because the price level is a reference point, the actual value of which should not matter.
Answer the following statement true (T) or false (F)
Dogfighting is against the law in New Jersey, resulting in high-priced events held illegally in the state. What idea from Chapter 1 of the text does this story best illustrate?
A. There ain't no such thing as a free lunch. B. Social and political forces sometimes rein in market forces. C. The invisible hand is always invisible. D. Maintaining objectivity is easiest in positive economics.