The idea that the demand for car workers stems from the demand for cars is ?
Correct answer: C. derived demand
- A. output demand
- B. indirect demand
- C. derived demand
- D. the value of the marginal product of auto workers.
Explanation
The demand for labour used to produce cars depends on consumers' demand for cars. This indirect relationship is called derived demand, because firms demand workers to produce a product demanded by consumers.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
The substitution effect of higher wages suggests that as the wage rate increases ?
If the income effect is smaller than the substitution effect, higher net wages will ?
Differences in wages that result from differences in working conditions are known as ?
If people can borrow and lend to perfectly smooth out their lifetime living standards, then ?
A period of unemployment due to recession will ?
Guest worker programs usually result in temporary migration of workers from ?