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.

When economists say that the demand for labor is a derived demand, it means that it is related to the demand for the product or service the labor is producing. In other words, the demand for labor is derived from the demand for the final product or service that the labor is used to produce. If the demand for the final product or service increases, then the demand for labor used in producing that product or service will also increase. On the other hand, if the demand for the final product or service decreases, then the demand for labor used in producing that product or service will also decrease.