Because of a decline in world demand for automobiles due to continued world
Wide recession, General Motors announced a sizeable layoff of production workers. This is an example of:

Question

Quizplus · Accepted Answer

This is an example of derived demand, where the demand for labor (production workers) is dependent on the demand for the final product (automobiles). When the demand for automobiles decreases due to a recession, it leads to a reduced need for production workers, hence the layoffs.

Because of a Decline in World Demand for Automobiles Due