Asked by
Genesis Benitez
on Nov 26, 2024Verified
When economists say that the demand for labor is a derived demand, they mean that it is
A) dependent on government expenditures for public goods and services.
B) related to the demand for the product or service labor is producing.
C) based on the desire of businesses to exploit labor by paying below equilibrium wage rates.
D) based on the assumption that workers are trying to maximize their money incomes.
Derived Demand
Demand for a product or service that results from the demand for another good or service, like the demand for steel driven by demand for cars.
Demand for Labor
The demand for labor reflects the amount of labor employers are willing to hire at a given wage rate, influenced by economic conditions and productivity.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning that no one can be effectively excluded from use and where use by one individual does not reduce availability to others.
- Recognize the derived nature of labor demand and its dependence on product demand.
Verified Answer
VM
Learning Objectives
- Recognize the derived nature of labor demand and its dependence on product demand.