The Fact That the Demand for Car Workers Stems from the Demand

question 38

Multiple Choice

The fact that the demand for car workers stems from the demand for cars is referred to as:

• A) indirect demand
• B) output demand
• C) derived demand
• D) the value of the marginal product of car workers

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Inventory Management

Inventory management involves overseeing and controlling the ordering, storing, and use of components that a company will use in the production of the items it will sell as well as the managing of quantities of finished products.

Collection Policy

Procedures followed by a firm in collecting accounts receivable.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.