The demand for labour is different from the demand for final goods and services because
A) the demand for labour is derived from the demand for the good or service the labour is used to produce.
B) it is a demand for people, not inanimate objects.
C) the demand for labour is more inelastic than the demand for the goods and services produced with this labour.
D) the law of demand does not apply to the demand for labour.

Question

Quizplus · Accepted Answer

The demand for labour is derived from the demand for the final goods and services that the labour is used to produce. This is because firms hire workers to produce goods and services that they expect to sell to the consumers. Therefore, the demand for labour is indirectly derived from the demand for final goods and services. The other answer choices are not accurate. B is incorrect because the demand for labour is not for people themselves, but for their skills and productivity. C is incorrect because the elasticity of demand depends on various factors and can vary for different goods and services. D is incorrect because the law of demand applies to the demand for labour as well as for goods and services.

The Demand for Labour Is Different from the Demand for Final