The Demand for Labor Is Called a "Derived Demand" Because

question 62

Multiple Choice

The demand for labor is called a "derived demand" because it is

• A) derived from the demand for the products it is used to produce.
• B) affected by the demand for consumer products workers produce.
• C) affected by the price of consumer products workers produce.
• D) all of the above.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, calculated by subtracting accumulated depreciation from the asset's original cost.

Boot

Additional cash or property included in a transaction to even out a trade or exchange of dissimilar assets.

Depreciated

Refers to the reduction in the value of an asset over time due to wear and tear or obsolescence.

Nonmonetary Asset

Assets that cannot be easily converted into cash and hold value in forms other than currency, such as property, equipment, and patents.