The Demand for Factor Is Driven by the Demand for Goods

question 158

Multiple Choice

The demand for factor is driven by the demand for goods and services produced by that factor of production. This phenomenon is referred to as

• A) elastic demand.
• B) joint demand.
• C) inverse demand.
• D) derived demand.

---

Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Cash Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Cash Payments

Transactions involving the transfer of actual cash from one party to another, often for goods or services rendered.

Dividends Payable

Liabilities that represent a company's obligation to pay its shareholders dividends declared by its board.