Which statement is true?

Question

Quizplus · Accepted Answer

The term "derived demand" refers to the demand for a factor of production (such as labor) that is derived from the demand for the goods and services that the factor helps to produce. Therefore, statement B is correct. Statement A is incorrect because "demand" and "derived demand" are not interchangeable terms. Statement C is incorrect because the demand for a final good or service is not a derived demand since it is the direct demand for the good or service itself. Statement D is also incorrect because the demand for imported clothing is not a derived demand, but rather the direct demand for the clothing itself.

Which Statement Is True