The demand for a factor of production is a(n)_____ demand.
A)derived
B)implicit
C)direct
D)distributional

Question

Quizplus · Accepted Answer

The demand for a factor of production (such as labor or capital) is derived from the demand for the final product that the factor is used to produce. For example, the demand for construction workers is derived from the demand for new homes or commercial buildings. Therefore, choice A is the correct answer. The other choices do not accurately describe the nature of factor demand.

The Demand for a Factor of Production Is A(n)_____ Demand