The demand for a productive resource is said to be "derived" because the demand for the factor
A)depends on the demand for the product it helps to produce.
B)depends on the demand for a complementary factor.
C)is derived from the state of the economy.
D)is derived from government policy.

Question

Quizplus · Accepted Answer

The demand for a productive resource is considered "derived" because it is based on the demand for the products or services that the resource helps to produce. If there is high demand for a product, there will consequently be high demand for the resources needed to produce that product.

The Demand for a Productive Resource Is Said to Be