The demand for labor is derived from the
A)demand for leisure.
B)supply of labor.
C)demand for final-output goods.
D)supply of final-output goods.

Question

Quizplus · Accepted Answer

The demand for labor is derived from the demand for final-output goods. As the demand for goods increases, firms require more labor to produce those goods, leading to an increase in demand for labor. Similarly, a decrease in demand for goods will lead to a decrease in demand for labor. Therefore, the demand for labor is closely related to the demand for final-output goods.

The Demand for Labor Is Derived from the