Asked by Taylor Ingram on Jul 04, 2024
Verified
The demand for labor is a derived demand, whereas the demand for capital is not.
Derived Demand
Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.
Capital
Financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.
- Gain an understanding of the notion of derived demand and its significance in relation to the need for resources like labor and capital.
Verified Answer
JB
Jacob BucherJul 05, 2024
Final Answer :
False
Explanation :
Both the demand for labor and the demand for capital are considered derived demands, as they are both dependent on the demand for the goods and services they help produce.
Learning Objectives
- Gain an understanding of the notion of derived demand and its significance in relation to the need for resources like labor and capital.